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MNI BRIEF: Fed’s Goolsbee - Policy Becoming Too Restrictive

Chicago Fed president says job market weakening but not recessionary.

MNI (WASHINGTON) - Chicago Fed President Austan Goolsbee said Monday Federal Reserve policy might be overly restrictive as rates stay at 23-year highs but inflation keeps falling. 

“If we are not overheating, we should not be tightening our restrictiveness in real terms. If inflation is falling, us staying at the same rate is tightening,” Goolsbee said in an interview on CNBC. “The real funds rate is as high as it’s been in a long time." 

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MNI (WASHINGTON) - Chicago Fed President Austan Goolsbee said Monday Federal Reserve policy might be overly restrictive as rates stay at 23-year highs but inflation keeps falling. 

“If we are not overheating, we should not be tightening our restrictiveness in real terms. If inflation is falling, us staying at the same rate is tightening,” Goolsbee said in an interview on CNBC. “The real funds rate is as high as it’s been in a long time." 

Keep reading...Show less