Federal Reserve Bank of Chicago President Austan Goolsbee spoke in an interview with CBS’ Face the Nation on Sunday:
- US credit
conditions are tight and are getting tighter - no certainty the Fed will cut interest rates next month, but not doing so could damage the labour market
- “When you set a rate high like we have and hold it there
while inflation falls, you’re actually tightening,” - the economic data is a mix of positive indicators and
some that are more concerning - “If you keep too tight
for too long, you will have a problem on the employment side of
the Fed’s mandate.”
This article was written by Eamonn Sheridan at www.forexlive.com. Source