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Fed's Warsh: markets not fully recovered

WASHINGTON (Reuters) - Federal Reserve Governor Kevin Warsh said on Tuesday that financial markets have not fully recovered after the financial crisis and that economic growth is currently weighted to government expansion.

“The capital markets from where we sit have improved, but to say that the markets are functioning exceptionally well I think overstates,” Warsh said while speaking on a panel at Georgetown University’s McDonough School of Business.

“The growth story I would tell you about is ... a growth story in the size of government, it’s a growth in the number of government employees, it is a growth in the change in government policies,” he said.

Reporting by Mark Felsenthal

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