Fed’s Goolsbee says trend of economic data justifies multiple rate cuts

Federal Reserve Bank of Chicago President Austan Goolsbee spoke with Dow Jones / Market Watch (gated), published only minutes ago:

• “The long arc shows inflation is coming down very significantly, and the unemployment rate is rising faster” than Fed officials had expected in June
• Given the more favorable inflation data and the less favorable unemployment data, “it is pretty clear that the path is not just rate cuts soon” … but multiple cuts over the next 12 months
• said he saw “more” warning signs about the cooling labor market
• persistent weakness has raised the possibility that the labor market will keep cooling, and could “turn into something worse”

On the NFP due later:

• “I don’t want to be basing decision on one data point”

USD/JPY looks to be paying attention:

Goolsbee is towards the dovish end of the Federal Open Market Committee (FOMC) spectrum. Most dovish I would say.

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