Fed’s Goolsbee on US CPI report – “This is what a path to 2% inflation looks like’

Federal Reserve Bank of Chicago President Austan Goolsbee is pretty happy with the CPI report for June:

• June CPI report ‘excellent,’ improvement on shelter inflation
  ‘profoundly encouraging’
• This is what a path
  to 2% inflation looks like
• As inflation falls,
  leaving Fed policy rate steady means Fed is tightening policy
• The reason to
  tighten policy would be if economy is overheating
• We are not
  overheating
• Labor market is
  cooling, still strong
• It doesn’t feel like
  the beginning of a recession
• Financial conditions
  are pretty restrictive
• I don’t like tying
  our hands on policy decisions
• Need to decide when
  to cut rates, not trying to figure out a rate path for next seven
  months

More on the report here ICYMI:

• Forexlive Americas FX news wrap: CPI cools, Japan intervenes

This article was written by Eamonn Sheridan at www.forexlive.com.