Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee warned on Friday that while sinking employment data is typically a cause for interest rate cuts, still-high inflation data is still cause for concern, and key Fed officials may not be fully sold on a September rate cut.
Key highlights
Open to criticism on Fed decision-making.
Totally opposed to taking away Fed independence.
Strange to call own move to Fed from CEA after 12 years “sinister” (in reference to Stephen Miran’s shift to the Fed board).
Anyone who joins FOMC will take job seriously.Hiring could be artifically lower due to immigration.
Still undecided on September rate decision.
If we were to start seeing layoffs, we’d be nervous.
We have to look at the inflation side of the Fed’s mandate, too.
We want to make sure that the services inflation uptick is a blip.
Fed independence is critical if we don’t want inflation.
Sttill think we’re likely in the full-employment space.
Shocks are pushing the US in a stagflationary direction.
