Fed's Goolsbee on US CPI report - "This is what a path to 2% inflation looks like'
Federal Reserve Bank of Chicago President Austan Goolsbee is pretty happy with the CPI report for June: June CPI report 'excellent,' improvement on shelter inflation 'profoundly encouraging'This is what a path to 2% inflation looks likeAs inflation falls, leaving Fed policy rate steady means Fed is tightening policyThe reason to tighten policy would be if economy is overheatingWe are not overheatingLabor market is cooling, still strongIt doesn't feel like the beginning of a recessionFinancial conditions are pretty restrictiveI don't like tying our hands on policy decisionsNeed to decide when to cut rates, not trying to figure out a rate path for next seven monthsMore on the report here ICYMI:Forexlive Americas FX news wrap: CPI cools, Japan intervenes This article was written by Eamonn Sheridan at www.forexlive.com.
Federal Reserve Bank of Chicago President Austan Goolsbee is pretty happy with the CPI report for June:
- June CPI report 'excellent,' improvement on shelter inflation 'profoundly encouraging'
- This is what a path to 2% inflation looks like
- As inflation falls, leaving Fed policy rate steady means Fed is tightening policy
- The reason to tighten policy would be if economy is overheating
- We are not overheating
- Labor market is cooling, still strong
- It doesn't feel like the beginning of a recession
- Financial conditions are pretty restrictive
- I don't like tying our hands on policy decisions
- Need to decide when to cut rates, not trying to figure out a rate path for next seven months
More on the report here ICYMI:
This article was written by Eamonn Sheridan at www.forexlive.com.
