Warsh Says US Economy Is Not Overheating as Q3 GDP Tops 3%
Updated
Updated · Reuters · Oct 28
Warsh Says US Economy Is Not Overheating as Q3 GDP Tops 3%
3 articles · Updated · Reuters · Oct 28
Summary
Warsh said the US economy is not running too hot even with demand pressures from the AI investment boom, after the Fed left interest rates unchanged.
Productivity gains, not excessive growth, are helping explain the economy’s strength, he said, arguing growth itself is not worsening inflation or making the Fed’s job harder.
The Fed’s aim “isn’t to throw sand in the gears” of the economy, Warsh said, adding that the economy is still pointing in the right direction.
Earlier Wednesday, Warsh said third-quarter GDP was running above 3% after first-half growth was revised up to 2.4%, underscoring why the Fed sees solid expansion even as inflation remains above target.