Fed Chair Warsh says financial conditions are hard to call restrictive

Federal Reserve Chair Kevin Warsh said at a Sept. 16 press conference, local time, that it is not easy to judge how restrictive monetary policy really is. Warsh said it is difficult to describe current financial conditions as restrictive, adding that, based on what Warsh heard in a roundtable discussion, colleagues also found it hard to characterize them that way. At the same time, Warsh said the latest rate hike amounted to withdrawing one layer of accommodation to better align financial and credit conditions with the ultimate policy goal.