More Goolsbee: We have done great on the employment mandate but not on inflation

Chicago Fed Pres. Goolsbee answers questions:

  • We have done great unemployment mandate, but we have not succeeded on the inflation mandate.
  • If you hold at this level of restrictiveness for too long, you will have to start thinking about the impact on jobs.
  • The policy trade-offs are harder this year.
  • The real Federal Funds rate is historically quite high
  • We will get inflation to 2% over a reasonable period of time.
  • if you start to see rising inflation globally, that suggests it’s driven by supply shocks or other things.
  • The puzzle on housing inflation is why official data is so different from market rents data.
  • Asked about a possible rate hike if needed, Goolsbee says “don’t think anything is not on the table”
  • It is not productive to speculate on conditions for raising or cutting rates.

This article was written by Greg Michalowski at Source