Fed's Goolsbee
- Goods price inflation is back to normal and surprising progress on services inflation too
- Says they need to see more progress on housing inflation
- When the unemployment rate goes up, it tends to go up rapidly; we haven't had that
- We're coming into 2024 in a much better place than we came into 2023
- The market should be focusing on economic data
- "We are definitely not off the Golden Path"
- The Fed is not facing an imminent threat from the labor market
- If inflation progress reverses, it could merit a rate hike
The comment on services inflation is one that I haven't heard before but overall, there's a clear message here:
"If we continue making strides against inflation, we must reflect that in our policy rates," he said.
That's a conditional call to cut.
