May Take Time for Warsh to Describe Reaction Function
Dow Jones00:57
1257 ET - Chairman Kevin Warsh didn't describe his own reaction function today, but it may take time, said Richard Fisher, Jefferies senior adviser and former Dallas Fed president. "I don't think he's ready to lay it out yet what his reaction functions likely to be, we got hints of it, but not much," Fisher said. At Warsh's Jackson Hole speech, he said that providing forecasts to illustrate the Fed's reaction function works better in theory than in practice. The reaction function describes how the Fed may adjust policy when responding to economic developments.
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