Fed’s Goolsbee: I feel like we’re on the golden path to ‘no recession and low inflation

  • Job market is outstanding. It’s getting back to a balanced, sustained level
  • I feel like we’re on the golden path to ‘no recession and the inflation target’
  • The supply of housing has been limited
  • There’s a lag to monetary policy
  • Inflation is down somewhat but needs to come down more
  • The main reason why inflation has been more persistent is that goods inflation has not come down as much as we thought. Let’s keep our eye on that over the next few months
  • We can have 1-2 more rate hikes this year
  • I haven’t seen anything that says one or two more hikes this year is wrong
  • Services inflation is the main reason inflation overall has been more persistent
  • Still undecided on July hike, highlights the importance of inflation data that’s upcoming

The Chicago Fed President is beyond a ‘soft landing’ and is talking about a perfect landing.

This article was written by Adam Button at www.forexlive.com. Source