Warsh: Hopes the market will price based on real economic conditions, not follow the Fed's interpretation

Odaily Planet Daily News: Federal Reserve Chairman Warsh said on Wednesday that he hopes financial markets will price securities based on their own judgment of the economy, rather than trying to price based on their expectations of how central bank officials will interpret data. He stated: "The more the market focuses on changes in the real economy, the more it can judge for itself which data are more important and which are relatively less important, and the more it can form prices that it believes are most likely." He added that this can avoid a situation where "financial markets are merely constantly reflecting what we have said." (Jin Shi)