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Fed’s Goolsbee: The July non-farm payrolls report is pretty much what we expect

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  • Jobs market cooling a bit but still extremely strong
  • Goods inflation has been tough to bring down
  • Highlights improvements in US productivity as disinflationary
  • Fed has to be patient, monetary policy has lags
  • Question should be: How long are we going to stay at these levels, not about when the next hike will be
  • Holding rates at these levels is increasing restriction
  • We have been getting promising numbers on inflation

Between Goolsbee and Bostic there isn’t much angst about the higher wage number today but that’s not a big surprise given their dovish leanings.

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