(In Aug 7 story, corrects company name in paragraph 13)
By Karen Brettell
Aug 7 (Reuters) - Federal Reserve Chairman Kevin Warsh wants the bond market to take the wheel, contending it should do more of the work of setting the price of money in America.
In the seven weeks since his debut policy meeting as chairman, the result has been a volatile, expensive test of a long dormant economic argument: at what point does information from the central bank become too much information for monetary policy to work efficiently? And how will investors react to economic data and other developments with less guidance from the Fed than they have become accustomed to in recent years?
The latest response to this question will come on Friday morning with the release of the July employment report, a key read on an economy that many investors believe is already running hot.
#chairman #economic
By Karen Brettell
Aug 7 (Reuters) - Federal Reserve Chairman Kevin Warsh wants the bond market to take the wheel, contending it should do more of the work of setting the price of money in America.
In the seven weeks since his debut policy meeting as chairman, the result has been a volatile, expensive test of a long dormant economic argument: at what point does information from the central bank become too much information for monetary policy to work efficiently? And how will investors react to economic data and other developments with less guidance from the Fed than they have become accustomed to in recent years?
The latest response to this question will come on Friday morning with the release of the July employment report, a key read on an economy that many investors believe is already running hot.
#chairman #economic
15 days ago
