Warsh Breaks Greenspan-Bernanke Rule Amid Oil Shock, Threatening Growth
TL;DR
Fed Chair Kevin Warsh raised rates into an oil-price shock, breaking the Greenspan-Bernanke rule of not tightening during the first round of energy-price shocks. The piece argues Greenspan and Bernanke avoided hikes to prevent amplifying a demand-driven downturn when oil shocks hit purchasing power; Warsh’s move could curb demand and slow growth, with an October meeting likely to decide on further tightening.
- Warsh Just Broke the Greenspan-Bernanke Rule, and the U.S. Will Pay RealClearMarkets
- This BlackRock strategist opposes a Fed hike. Here are the funds she recommends. MarketWatch
- Fed tightening into an energy shock has seldomly ended well, Rosenberg Research says TradingView
- Warsh Broke Greenspan-Bernanke Rule, and the U.S. Will Pay RealClearMarkets
- The Fed Hiked Rates Into an Oil Shock. Some Economists Think That's a Mistake. southshorepress.com
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