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Fed’s Goolsbee: Last six months have shown we can bring down inflation without jobs lost

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  • So far we’ve been able to walk the golden path
  • The bank problems ‘have been the dog that’s not barking’
  • We have been disproving people with a stable Phillips curve mindset
  • This has been a strange business cycle, so normal tradeoffs don’t apply
  • Asked about a rate hike, says he’s ‘not a fan of tying our hands before the data’
  • Notes openness to reading data ahead of Sept
  • Getting inflation down without higher unemployment ‘would be a triumph’

I don’t see any reason for him to be talking about ‘triumphs’ and whatnot. Fed officials were quiet when it came to taking responsibility for 9% inflation but are now taking a premature victory lap for bringing it down without a recession.

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