Fed’s Goolsbee: There are some things that are flashing yellow

• Small business defaults are up, now it’s getting a little cautionary
• Unemployment is up and that’s a caution sign
• IF we move to less restrictiveness, it will ease some of these credit conditions
• Credit conditions seem tight

I don’t think it will surprise anyone when Goolsbee is banging the table for a rate cut and dovish statement in September but it’s certainly not clear that others are ready to line up behind him yet.

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