He President of the Federal Reserve Bank (FED) of Chicago, Austan GoolsbeeHe told CNBC on Thursday that the labor market remains stable and close to full employment, according to Reuters.
Key aspects
“Unemployment requests and other indicators support the vision of a stable labor market.”
“Before the tariffs of April 2, it seemed that the Fed was in a solid position in both mandates.”
“Fed needs clear that there will be no increase in inflation, and if it arrives, it will be transitory.
“The Hope is that there is not much inflation because of tariffs, but a few months of clarity are needed.
“Optimistic about recent inflation readings, but the Fed needs to be safe, particularly given the deadlines that are coming like July 9 on tariffs.”
“Economists are unanimous in which monetary policy must be free of political interference.”
“It is possible that tariffs have only a modest impact on inflation.”
“If inflation remains in the range of 2% and uncertainty is resolved, the Fed is on the way to lowering the rates.”
“An early advertisement by the president of the United States, Donald Trump, about the replacement of the president of the Fed, Jerome Powell, would have no impact on the Federal Open Market Committee.”
“Fed Acts and Transcripts show that monetary policy decisions are not about policy and elections.”
Market reaction
The US dollar is still under a persistent sales pressure on Thursday. At the time of publication, the USD index had dropped 0.5% in the day to 97.22.
These comments from Goolsbee received a neutral 5.2 score from FXstreet Fed Speech Tracker. Meanwhile, The FXSTERET Fed Feed Index It is 107.5, reflecting a slightly hard tone of the Fed hard line.
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.
