Federal Reserve Bank of Chicago President Austan Goolsbee speaking in a radio interview.
Headlines via Reuters:
- It’s possible we can get on ‘golden path’
- Monetary policy is
working - Overall level of
inflation is above where we want it - Clearly there are
risks - China, US govt shutdown
are among possible risks - We have also had
false dawns on inflation before - Want to see progress
on core inflation, especially goods and housing - Market’s
expectations on inflation also has a major influence - I’d pay less
attention to wage growth as an indicator of inflation - We are very rapidly
approaching time when are argument is not about how high should rates
go, but rather how long rates have to stay high - Collectively Fed
forecast is that rates will have to stay up for a relatively extended
period - You can’t change the inflation target until you’ve hit your inflation target
- We have to get to the 2% inflation target, retain credibility
- A possible UAW strike could have an impact, it could be material to our decisions
There isn’t much in these remarks that’s not pretty much the Fed script at present.
Goolsbee