More Goolsbee: We have done great on the employment mandate but not on inflation

Chicago Fed Pres. Goolsbee answers questions:

• We have done great unemployment mandate, but we have not succeeded on the inflation mandate.
• If you hold at this level of restrictiveness for too long, you will have to start thinking about the impact on jobs.
• The policy trade-offs are harder this year.
• The real Federal Funds rate is historically quite high
• We will get inflation to 2% over a reasonable period of time.
• if you start to see rising inflation globally, that suggests it’s driven by supply shocks or other things.
• The puzzle on housing inflation is why official data is so different from market rents data.
• Asked about a possible rate hike if needed, Goolsbee says “don’t think anything is not on the table”
• It is not productive to speculate on conditions for raising or cutting rates.

This article was written by Greg Michalowski at www.forexlive.com.