Fed’s Goolsbee: We’ve seen significant improvement on inflation

  • Inflation is the key spot we’ve missed on our mandate and that’s where we should be focused
  • If we get improvement on inflation, back into the range of our dual mandate, then we have more-symmetric concerns
  • We don’t debate on specific policies for the future, that’s not how the Fed works
  • We vote on the current meeting
  • Far be it from me to get into the head of what the market is thinking
  • We don’t choose our actions based on how we think markets will react
  • I don’t know if markets have gone too far
  • The market based projection of rates is greater than the SEP
  • I was surprised that the market tried to say there was some difference between what Williams said and what Powell said

The market is pricing in 144 bps of rate cuts next year.

I argued on Friday that Williams wasn’t saying anything different and wasn’t pushing back, which is exactly what Goolsbee confirmed today.

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