Walsh: Hopes the market prices based on real economic conditions, rather than following the Fed's interpretation

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