Fed Reserve Chair Kevin Warsh: ‘I’m Impressed by the Overall Performance of the Economy, Which Appears to Have Strengthened’

RUSH EXCERPT:
WARSH: “I’m impressed by the overall performance of the economy, which appears to have strengthened one indicator of strength. It’s how well and economy holds up under stress I well. It holds up under shocks on that score. Both main street and Wall Street have been remarkably resilient. Several other observations. Business cap ex is rising rapidly. The fourth quarter, change and investment in equipment and tangibles has been run. Nine percent it’s highest growth rate, since 20 twenty one and more than half of the cap x, growth can likely be ascribed the built out related day. I. What about profits for the firms in the us and p profits are grown more than 20 percent over the past year alone. Profit margins are quite elevated relative to history, overall equity market volatility, quite low. Worse than keenly focused on market internals watching performance across sectors, expectations for both growth and cap acts and corporate earnings are running quite high. I continue to watch the change in the growth rates. Second, derivative, the following effects on asset prices, business, confidence, consumer incomes and spending are equally important to gauge credit spreads on corporate bonds and leverage loans are near the low end of their historical averages. An issue volumes this year quite strong. Looking beyond fixed income markets to the banking business in the July, so called slew survey. Banks tell us that standards for see, and I loans on the easier end of their historical ranges, helps explain their growth that we’ve seen this year and these loans. In, my view, credit and loan markets are showing few signs, a policy restraint. Certain sectors like housing and agriculture are showing strains, but on balance, I would be hard pressed to describe broad financial conditions as restrictive real consumer spending has been healthy despite the shocks increasing more than two percent over the past four quarters.”