Fed’s Goolsbee: The unemployment rate tends to go up rapidly

  • it’s important to “be aware that historically when the unemployment rate starts going up, it doesn’t just gradually drift up. It tends to go up rapidly.”
  • Did not rule out the possibility of Fed cutting rates in March
  • Expects rates to be lower next year compared to now, though not significantly
  • With inflation fall to 2% target, it could be appropriate to be more mindful of risk that unemployment rises

This is a topic I’ve written about before and is very well known in the fixed income market.

This comment appears to have been made at a WSJ event but few headlines are trickling out. This is dovish stuff.

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