Federal Reserve Bank of Chicago President Austan Goolsbee in a radio interview, headlines via Reuters:
- Of all pieces of data, housing inflation is most paramount
inflation expectations have been anchored
- Have some concern about keeping rates too high for too long
- Once you believe you
are on path to 2% inflation, amount of restrictiveness needs to be
- Data will determine how fast we go
Goolsbee tends to be less hawkish than his FOMC colleagues. So his “concern about keeping rates too high for too long” is not out character. Unlike Waller earlier:
From the wrap:
- Fed Governor Chris Waller made a surprise turn, saying there are ‘good arguments that if inflation continues falling for several more months that you could lower the policy rate’. It’s the first time a Fed official has put rate cuts on the table and it’s especially surprising coming from the normally-hawkish Waller.
Still, Goolsbee backing it up in his interview is indicative of a reduction in hawkishness at the Fed.
This article was written by Eamonn Sheridan at www.forexlive.com. Source