Chicago Federal Reserve Bank President Austan Goolsbee recently expressed his views on key economic indicators, emphasizing the importance of progress on inflation and the conditions for maintaining current interest rates. He made these remarks during a CNBC interview, where he also discussed the potential implications of persistently high long-term yield rates.
Goolsbee did not speculate about future rates due to ongoing data analysis and stressed that any change in the rate stance will primarily be influenced by the inflation rate. He outlined his conditions for the Federal Reserve to cease rate adjustments, which involve a clear path towards a 2% inflation rate.
Despite observing positive supply side developments, Goolsbee expressed concerns about an overall economic weakening. However, he identified an improved job market balance as a positive development amidst these conditions. The Bureau of Labor Statistics reported a slowdown in labor market hiring, but unemployment remains close to a multi-decade low.
Fed Chair Jerome Powell suggested a halt in rate increases after policymakers kept rates at an unprecedented 22-year high of 5.25%-5.5%. Some Fed officials considered an increase in Treasury yields as a positive factor for economic restraint.
Goolsbee reiterated his commitment to leading the economy towards a “soft landing,” and highlighted the need for comprehensive data analysis before setting future rates. He maintained that significant strides have been made in reducing inflation, which he sees as a crucial factor in shaping future policy decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here