Productivity Needs Equities Warsh Does Too

The report argues that high equity valuations are critical for driving corporate productivity growth. Consequently, the Fed is incentivized to maintain liquidity and support market prices to avoid a crash during a period of economic transition.

Key Takeaways

• 1.Management of total factor productivity is bolstered by high equity valuations which provide the capital intensity needed for growth.
• 2.Fed official Warsh is expected to maintain market liquidity and lean dovish to support the equity market, despite underlying economic risks.

Table of Contents

• Macro and Strategy Ideas
• PRODUCTIVITY NEEDS EQUITIES, WARSH DOES TOO
• Disclaimer