Federal Reserve Bank of Chicago President Austan Goolsbee in a radio interview, headlines via Reuters:
- Of all pieces of data, housing inflation is most paramount
- Market-based inflation expectations have been anchored
- Have some concern about keeping rates too high for too long
- Once you believe you are on path to 2% inflation, amount of restrictiveness needs to be less
- Data will determine how fast we go
---
Goolsbee tends to be less hawkish than his FOMC colleagues. So his "concern about keeping rates too high for too long" is not out character. Unlike Waller earlier:
From the wrap:
- Fed Governor Chris Waller made a surprise turn, saying there are 'good arguments that if inflation continues falling for several more months that you could lower the policy rate'. It's the first time a Fed official has put rate cuts on the table and it's especially surprising coming from the normally-hawkish Waller.
Still, Goolsbee backing it up in his interview is indicative of a reduction in hawkishness at the Fed.
Fed's Goolsbee
