Fed’s Goolsbee says inflation is above where we want it, monetary policy is working

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
  • Overall level of
    inflation is above where we want it
  • Clearly there are
  • 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
  • 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