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 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.
Source: Fed's Goolsbee on US CPI report - "This is what a path to 2% inflation looks like' (https://www.forexlive.com/centralbank/feds-goolsbee-on-us-cpi-report-this-is-what-a-path-t-2-inflation-looks-like-20240711/)
forexlive.com