Fed’s Goolsbee: March cut is unlikely (but does not rule it out either)

  • March cut is unlikely
  • Economy has been quite strong
  • If we keep getting inflation going down despite strong jobs in GDP growth, then we might be in a period like mid-1990s
  • He does not want to rule out a March cut but does want to see more data and not tie the Fed’s hands
  • Fed’s goal is PCE measure of 2%
  • Inverted yield curve, as a rule of thumb, is not applicable as a recession indicator
  • Does not see widening problems in the regional banking system

Goolsbee tends to be more of a dove but seems to be straddling the fence as he speaks the facts.

This article was written by Greg Michalowski at www.forexlive.com. Source