In a recent interview at the European Central Bank conference in Sintra, Portugal, Chicago Federal Reserve Bank President Austan Goolsbee expressed concerns about the weakening economy. He emphasized that the Federal Reserve’s main goal is to lower inflation without negatively impacting the labor market.
Goolsbee highlighted the importance of closely monitoring inflation trends to determine if they are moving closer to the Fed’s 2% target. If inflation continues on its current path, he stated that it could increase confidence in the Fed’s decision-making regarding interest rates. On the other hand, as inflation decreases, Goolsbee noted that Fed policy naturally becomes more stringent. He stressed the need to only maintain a restrictive policy for as long as necessary to achieve economic stability.
Overall, Goolsbee’s comments suggest a cautious approach to managing economic indicators and policy decisions in order to support the health of the economy and labor market.