8 Words From Fed Chair Kevin Warsh That Signal Where Interest Rates Are Headed
The June inflation data was more positive than in recent months, but that doesn't mean the Fed's job is done.
Overview
Inflation has been running hot for several years. The normal way the Federal Reserve attempts to cool inflation down is to increase interest rates. The problem is that being too aggressive with interest rate increases can push the economy into a recession. The Fed is constantly walking a tightrope, and today's environment is no different. Fed Chair Kevin Warsh just made clear that the fight against inflation isn't over yet.
As the chairman of the Federal Reserve, Kevin Warsh's words are heavily scrutinized. He also has to make regular appearances before Congress to answer questions, giving investors a lot to examine. One reply from his first appearance before Congress since being appointed as Fed Chair stands out: "There might be some that look at this morning's data and say, 'mission accomplished.' That is not my view."
Image source: The Federal Reserve.
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Originally published at www.fool.com.