In the same Jackson Hole keynote Warsh said he "would be hard pressed to describe broad financial conditions as restrictive", against an economy he characterised as having strengthened - capital expenditure up roughly 9%, S&P 500 profits up more than 20%, and credit spreads near historic lows - with labour consistent with full employment at 4.1% unemployment. A chair who describes conditions as non-restrictive while his preferred inflation gauge runs above 3% has located his bias on the tightening side.