Fed’s Goolsbee: Even if inflation comes in a bit higher, it’s still consistent with path

  • I don’t support waiting until inflation is at 2% on a 12-month basis before cutting
  • Rate cuts should be tied to confidence in being on a path towards our target rate
  • I expect improvements in housing services inflation to resume
  • CPI data yesterday was puzzling, is something I am watching
  • Current policy stance is quite restrictive
  • Supply side may continue to help us this year
  • Higher productivity, if continued, would have profound implications for policymakers

Goolsbee is a dove so this isn’t a huge surprise but there were some ticks lower in the US dollar on the headlines and I think that’s the right take. I would like to hear from some more hawkish Fed members though.

What’s interesting is that what Goolsee is saying here sounds much like what Powell told Congress behind closed doors yesterday.

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