Federal Reserve Bank of Chicago President Austan Goolsbee told Bloomberg TV that labor market data for April was strong, with 175,000 new jobs.
Main conclusions
“We hit an inflation bump at the beginning of the year.”
“I don't like to commit until the next meeting.”
“The Fed should be reassured that recent inflation is not a sign of a reacceleration.”
“What happened in the labor market this year has to return to normal based on estimates of greater immigration; an attempt is still being made to analyze it.”
“Monetary policy is restrictive; the real federal funds rate is as high as it was decades ago.”
“We need to be more reassured about whether the Fed is still on the path to reducing inflation.”
“If the Fed remains tight for too long, it will have to think about the employment side of the mandate; but the current numbers are strong.”
Market reaction
The US Dollar Index recovered from its daily lows following these comments and lost 0.25% on the day, settling at 105.06.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
