Fed’s Goolsbee: Jobs report makes me more comfortable that the employment market stable

• There are still a couple of question marks about over-indexing on individual jobs months
• There was a very big jobs growth in private sector retail hiring, is that a sign of a stronger consumer or a one-off?
• I don’t see the jobs market as a source of inflation
• Inflation rate in the past six months has been 1.9% annualized
• The rise in long rates is from higher than expected growth and expected slower pace of fed cuts
• In 12-18 months, rates will be a fair bit lower if current expectations are met
• The current high annual inflation rates largely reflect the uptick of early last year, wrong to say there has not been recent progress
• So far do not see evidence of overheating in recent months
• It’s very important to watch productivity numbers

Goolsbee is a dove and he certainly didn’t shift in this interview.

This article was written by Adam Button at www.forexlive.com.