• Consumer sentiment is not a good indicator for spending behavior
• Until the recent rate cut, falling inflation has meant that has been tightening policy.
• We are shifting back to a normal dual mandate mode.
• We are 100s of basis points above the neutral rate.
• If conditions continue like this, there are a lot of cuts to come over the next 12 months.
• We have a long way to come down to get the interest rate to something like neutral

Goolsbee’s comments are certainly along the dovish side.

Yields remain higher but off their highest levels with the 10 year now up 4.6 basis points. US stocks are marginally higher but off their high levels as well.

This article was written by Greg Michalowski at www.forexlive.com.