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:
US CPI yy