Fed's Goolsbee: Need to be a bit careful about getting aggressive
Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee said on Tuesday that there is low-hiring and low lay-off in the labor market, per Reuters.
Key takeaways
"We did not move the inflation target."
"Have to get inflation to 2%, period."
"Anyone saying we're raising the inflation target, that's dangerous talk."
"I think we are mildly restrictive."
"Neutral is below where we are now by 100-125 basis points."
"We need to be a bit careful about getting aggressive."
"I think rates can come down some if we're on a path to getting inflation back to target."
"Ultimately, Fed rate may settle at around 3% with inflation back to 2%, and I'm ok with that."
"Critically important that we maintain monetary independence."
"Labor market continues to cool at a mild, modest pace."
"Supply side of labor is moving all around with immigration."
Source : Fxstreet.com