Fed’s Goolsbee: Rates can come down over 12-18 months
Source Fxstreet
On Monday, Austan Goolsbee, President of the Chicago Federal Reserve Bank, expressed his belief that the Fed would eventually lower short-term rates once the uncertainty surrounding tariff policies is resolved.
Key Quotes
- So far we've had excellent inflation reports and, surprisingly, little direct impact of tariffs.
- Don't know if that will remain true in the next 1-2 months.
- Still think underneath all the tariff 'dirt in the air', rates can come down over 12-18 months.
- Still think if we can get past this bumpy period, the dual mandate looks pretty good.
- A little gun-shy about arguing that tariffs will have a transitory effect on inflation.
- Recent PCE inflation print may have been the 'last vestige' of the pre-tariff impact.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
America is throwing billions of dollars and burning through massive energy reserves in an arms race to dominate AI before China gets there first.
While Wall Street may be convinced the Federal Reserve (Fed) is about to slash interest rates, many experts argue the hard economic data says otherwise.
Gold (XAU/USD) edges higher during the Asian session on Friday and looks to build on the overnight bounce from the vicinity of the $3,500 psychological mark.
The US Dollar Index (DXY) is trading around 98.10 during the early European hours on Friday after recovering recent gains from the previous session.
The United States (US) Bureau of Labor Statistics (BLS) will release the critical Nonfarm Payrolls (NFP) data for August on Friday at 12:30 GMT.
Related Instrument
