Federal Reserve Bank of Chicago President Austan Goolsbee speaking in a radio interview.
Headlines via Reuters:
- It’s possible we can get on ‘golden path’
- Monetary policy is
working - Overall level of
inflation is above where we want it - Clearly there are
risks - China, US govt shutdown
are among possible risks - We have also had
false dawns on inflation before - Want to see progress
on core inflation, especially goods and housing - Market’s
expectations on inflation also has a major influence - I’d pay less
attention to wage growth as an indicator of inflation - We are very rapidly
approaching time when are argument is not about how high should rates
go, but rather how long rates have to stay high - Collectively Fed
forecast is that rates will have to stay up for a relatively extended
period - You can’t change the inflation target until you’ve hit your inflation target
- We have to get to the 2% inflation target, retain credibility
- A possible UAW strike could have an impact, it could be material to our decisions
There isn’t much in these remarks that’s not pretty much the Fed script at present.
This article was written by Eamonn Sheridan at www.forexlive.com. Source