Some things are flashing yellow, it’s getting a little cautionary

Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee noted on Friday that some economic signals are giving policymakers cause for concern, and nodded at a general tightening of credit facilities.

Key highlights

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.

Credit conditions seem tight.

Lately, business contacts say that they can’t pass on higher prices to consumers as before.

The impact of past hikes may not be fully realized.