Federal Reserve Bank of Chicago President Austan Goolsbee spoke with Dow Jones / Market Watch (gated), published only minutes ago:
- "The long arc shows inflation is coming down very significantly, and the unemployment rate is rising faster" than Fed officials had expected in June
- Given the more favorable inflation data and the less favorable unemployment data, "it is pretty clear that the path is not just rate cuts soon" ... but multiple cuts over the next 12 months
- said he saw "more" warning signs about the cooling labor market
- persistent weakness has raised the possibility that the labor market will keep cooling, and could "turn into something worse"
On the NFP due later:
- "I don't want to be basing decision on one data point"
USD/JPY looks to be paying attention:
Goolsbee is towards the dovish end of the Federal Open Market Committee (FOMC) spectrum. Most dovish I would say.
