Fed Chair nominee Warsh, when asked about gas prices and first-place prices, says Fed needs to stay in its lane and should have an open mind on all sorts of data though
Importance
Level 1
- Noting that any changes in balance sheet would be part of a public discussion.
- Regarding prices that cannot affect one of the effects, but only persistent effects.
- A regime change on the balance sheet would need to be well orchestrated, deliberated and well described.
- Inflation doesn't come about when the economy grows too much, it comes about when the government prints too much and spends too much.