Fed’s Goolsbee: We want to be careful about the employment side of the mandate

• I don’t like tying our hands for any meeting but Fed funds minus inflation is as high as it’s been in decades
• Inflation is on a path to 2%
• We’re the tightest we’ve been in this cycle, even though we stopped hiking last July
• Fed forecasts show widespread support for rate cuts
• It’s hard to put a specific number on where neutral is
• By almost all measures the job market has been cooling
• The market does not believe we’re going to be stuck at 3% or 2.5%

There isn’t much new here from Goolsbee but he certainly supported the spirit of Powell’s speech.

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