In an interview with CNBC on Friday, Chicago Federal Reserve Bank President Austan Goolsbee said that they don’t need a recession to eliminate inflation concerns, per Reuters.
Additional takeaways
“Never make too much out of any one month of jobs number.”
“It is clear job market is strong but cooling.”
“Getting to a more sustainable pace of job gains.”
“Would caution taking wage data as a leading indicator of inflation.”
“Prices move first, then wages.”
“Job market is outstanding, getting back to a balanced, sustainable level.”
“Fed’s overriding goal is to get inflation down.”
“I feel like we are on golden path of avoiding recession.”
“We can get unemployment rate not to a recession level and still get prices down.”
“There’s a lag to monetary policy.”
“Goods inflation is the main reason inflation overall has been more persistent.”
Market reaction
These comments failed to help the US Dollar find demand. As of writing, the US Dollar Index was down 0.72% on the day at 102.36.
Source: https://www.fxstreet.com/news/feds-goolsbee-it-is-clear-job-market-is-strong-but-cooling-202307071541