Fed's Goolsbee on CNBC
Fed's Goolsbee is on CNBC and says:
- If coming from term premia, we have to take that into account.
- You cannot answer what number on long-term yield equals enough tightening.
- We are also getting positive supply-side developments in the economy.
- The economy is weakening.
- Job market is getting into better balance.
- So far, the slowdown is what you would want, toward a more balanced growth and sustainable level.
- Inflation has come down a lot.
- We might equal the fastest drop in inflation in the last century.
- As long as we are making progress on inflation, the topic is then only how long we keep rates at this level.
- Inflation is more important part of the mandate right now.
- I don't like precommitting what rates will be at the next meeting.
- Still a lot of data to parse before then.
- My conditions for Fed being done with rates are that we are clearly back on path to get inflation back to 2%
- So far we are on a good path on inflation, but not done yet
- Priority for changing rates stances inflation rate
- Financial conditions clearly matter, but market doesn't get to tell the Fed what to do.
- There is possibility of the "golden path" that allows us to get inflation down without recession
