Goolsbee: Market Can’t Tell Fed What To Do

Chicago Fed’s Goolsbee speaks on CNBC, noting that the job market is getting into better balance but inflation is the more key part of the mandate now. He has a voting role in the sole remaining meeting of 2023 before resuming in 2025. Summarizing pertinent headlines from Bloomberg:

• Fed paying attention to movements in yields, need to work out what’s driving long rates up (something echoed by both Kashkari and Mester in prior appearances).
• Financial conditions matter [but?] market can’t tell Fed what to do.
• Job market is getting into better balance.
• Clear that inflation is more key part of mandate now – the number one thing is to get inflation down. (Recall he said on Oct 16 after the CPI report on Oct 12 that the fall in US inflation is not a “blip”).
• Don’t want to pre-commit ourselves on rate decisions.