The president of the Chicago Fed. Goolsbee speaks and says:
- Progress on inflation in the United States has stalled.
- It makes sense to wait for more clarity before changing rates.
- The federal government’s current restrictive monetary policy is appropriate
- The right Fed policy going forward will depend on the data.
- This remains useful for the return to an improvement in inflation in the months to come
- Persistently high housing inflation is now just a problem.
- This is additional space to make progress on service inflation thanks to the increase in labor supply.
- We need to determine whether strong GDP and employment figures are a sign of overheating that is driving up inflation.
- Not all data suggests an overheating labor market.
Goolsbee is considered more of a dove, but has recently changed her views.
He aligns with other Fed officials in saying the Fed will likely cut interest rates in 2024.
This article was written by Greg Michalowski at www.forexlive.com.
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