Free Trial

MNI BRIEF: Fed's Goolsbee Wants 'A Lot' More Months Like May

Chicago Fed President says the central bank is going to get a lot of data between now and the September and December meetings.

Chicago Fed President Austan Goolsbee said Friday in the near- to medium-term what will determine whether interest rates can go back to normal is whether inflation is on the path to the 2% target, adding he wants "a lot' more months like May's inflation prints before cutting.

"Inflation [in the May CPI] was back down to levels that if we got a lot of months like this, we would be feeling so much better that we were getting inflation to the Fed's target," he said in Q&A at an Iowa Farm Bureau economic event. Goolsbee preferred not to say when he'd like to first cut rates because it ties his hands as a policymaker. (See: MNI INTERVIEW: FOMC Won’t Agree On Cuts Until December-Pingle)

Keep reading...Show less
180 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Chicago Fed President Austan Goolsbee said Friday in the near- to medium-term what will determine whether interest rates can go back to normal is whether inflation is on the path to the 2% target, adding he wants "a lot' more months like May's inflation prints before cutting.

"Inflation [in the May CPI] was back down to levels that if we got a lot of months like this, we would be feeling so much better that we were getting inflation to the Fed's target," he said in Q&A at an Iowa Farm Bureau economic event. Goolsbee preferred not to say when he'd like to first cut rates because it ties his hands as a policymaker. (See: MNI INTERVIEW: FOMC Won’t Agree On Cuts Until December-Pingle)

Keep reading...Show less