Warsh recommits to fighting inflation, touts growing capital investment
AMT reported last week that in Kevin Warsh's first address Aug. 31, from the helm of the U.S. central bank at the Jackson Hole Economic Policy Symposium, the Federal Reserve chair reiterated the Fed’s commitment to bringing inflation back to the 2% target, stating that the Fed has work to do as long as underlying inflation trends are not heading toward that goal.
While highlighting the resilience of both Main Street and Wall Street in the current economy, Warsh pointed to business capital investment having its highest growth rate since 2021.
“A large portion of the credit for the growth in business investment was attributed to AI; however, the market for machine tools is showing the same pattern as overall capital investment, growing at its highest pace since 2021,” said Christopher Chidzik, principal economist of AMT – The Association For Manufacturing Technology. “With an expanding economy and his redoubled commitment to tamping down excess inflation, it is more likely than not that current interest rate levels are the floor for the remainder of the year.”
INDUSTRIAL SUPPLY MAGAZINE
The July/August issue of Industrial Supply magazine features an in-depth cover story about Global Industrial. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
