At a Glance
- Former Fed Governor says the U.S. should not diverge too much from other developed economies
Despite the October stocks selloff, U.S. economic growth is still thriving in several areas. In the second quarter, GDP increased to 4.2 percent and consumer spending and corporate profits were up. In September, jobless claims fell to their lowest levels in decades. Still, should we have seen the stock market correction coming? And will it manifest itself in other areas, like jobs and GDP?
In September, we posed the question to former Federal Reserve Governor Kevin Warsh. During the 2008 financial crisis, he was one of a handful of Fed officials charged with setting new monetary policy during and after the crisis. He says we’re at a critical point.
“This is as important a moment in the global economy, over the course of the next few months, as we’ve had probably since the great financial crisis,” Warsh told us at the CME Group Precious Metals Dinner, where he was the keynote speaker.
Warsh points to the difference in growth between the U.S. and other developed countries. Making sure the divergence between the U.S. and those economies isn’t too great over the course of the next year is “really central both to our asset prices and our economy as it is to the rest of the world,” he says.
Watch his full remarks in the video above.