Analysis shows that former Federal Reserve Governor Kevin Warsh remained persistently pessimistic about economic productive capacity after the financial crisis and did not believe that high unemployment would curb prices.
According to an analysis by Nick Timiraos's colleagues Anthony DeBarros and Peter Santilli of former Federal Reserve Governor Kevin Warsh's predictions, Kevin Warsh remained consistently pessimistic about the economy's productive capacity in the years following the financial crisis. Compared to his peers, Kevin Warsh was less inclined to view high unemployment as idle capacity that would suppress prices. By his last few meetings, he believed the economy could not sustainably employ as many people as it once could.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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