In a speech more hawkish than many had expected, Fed Chair Kevin Wash cited
indicators showing a healthy economy, including elevated corporate profits,
steady consumer spending and narrower credit spreads. He said, In my view,
credit and loan markets show little sign that monetary policy is having a
restrictive effect. Overall, I find it hard to describe current broad financial
conditions as restrictive. The comments strengthened Wall Street's bets on
further Fed rate hikes.
