Austan Goolsbee
From TipRanks:
Federal Reserve Bank of Chicago President Austan Goolsbee said Friday that recent indications of cooling inflation are encouraging. However, he would like to see additional evidence in the coming months that price pressures are continuing to ease toward the central bank’s 2% target.
“If we get three, four months in a row like what we saw in June, I will be feeling much better that we are on path back to 2%,” he told Bloomberg. Earlier this week, the July CPI showed 3.4% annual growth, down from 3.5% in June.
Goolsbee Cautious on Inflation Ahead of Interest Rate Decision
Goolsbee added that inflation remaining above the Fed’s target for over five years has made him cautious about making quick changes to monetary policy. Once inflation sets in, “it can be painful and hard to get rid of,” he said. Meanwhile, Goolsbee added that economic growth and the labor market are both “stable.”
The Fed will meet for its next interest rate decision on September 16. The central bank is expected to hold rates steady with 67.4% odds, according to the CME FedWatch tool. At the same time, a 25-bp hike is still possible with 32.6% odds.
Positions: None.
