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MNI BRIEF: Goolsbee Suggests Preference For Gradual Fed Cuts

Chicago Fed President points to lags in central bank rate moves.

Federal Reserve Bank of Chicago President Austan Goolsbee on Friday said he would like for the central bank to begin considering dialing back its level of restrictiveness, also suggesting that because it could talk time for rate cuts to filter through to the real economy it could be better to move gradually.

"I want us to think through the restrictiveness," he said in a fireside chat with Angeles Investors. "If you start seeing warning signs because gradual is better than fast in my view." (MNI: Fed Seen Sticking To 25BP Cut In Sept Post-CPI-Ex-Staff)

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Federal Reserve Bank of Chicago President Austan Goolsbee on Friday said he would like for the central bank to begin considering dialing back its level of restrictiveness, also suggesting that because it could talk time for rate cuts to filter through to the real economy it could be better to move gradually.

"I want us to think through the restrictiveness," he said in a fireside chat with Angeles Investors. "If you start seeing warning signs because gradual is better than fast in my view." (MNI: Fed Seen Sticking To 25BP Cut In Sept Post-CPI-Ex-Staff)

Keep reading...Show less