Warsh's Cautionary Notes: A Delicate Balance Between Hawkish and Doveish Federal Reserve Chairman Kevin Warsh provided a nuanced assessment of the US economy last Friday, leaving investors to decipher his subtle hints about future monetary policy.
The markets' reaction was telling – odds of a September rate hike rose sharply, but the Fed's forward guidance remained opaque.
Warsh painted a picture of an economy at full employment, with growth strengthening and inflation still stubbornly high.