Fed’s Goolsbee says ‘more sniffing’ may be needed before rate cuts

by Pelican Press
17 views 4 minutes read



Fed’s Goolsbee says ‘more sniffing’ may be needed before rate cuts

Chicago Federal Reserve Bank President Austan Goolsbee speaks at the Council on Foreign Relations in New York, U.S., February 14, 2024. 

Staff | Reuters

“If you take a broad view, inflation got way above where we were comfortable with and it’s down a lot,” he said.

The first three readings for this year indicate covering the remaining distance to 2% “may not be as rapid,” he added.

That “stalling” merits further investigation on the direction of the economy before the Fed moves to cut rates, said Goolsbee, who is a nonvoting member this year of the rate-setting Federal Open Market Committee.

He described himself as a “proud data dog,” and pointed to what he says is “the first rule of the kennel.”

“If you are unclear, stop walking and start sniffing,” he said. “And with these numbers, we need to do more sniffing.”

“We want to have confidence that we are on this path to 2[%],” he said. “That’s the thing we have got to pay attention to.”

Former Kansas City Fed Pres.: The Fed is keeping all options on the table, including a rate increase

Housing inflation is a key area to watch, Goolsbee said.

“That’s the one that has not behaved as we thought it would,” he said.

Shelter costs, which make up about one-third of the weighting in the CPI, rose 5.7% in March from a year ago. 

“The market rent inflation is well down, but it hasn’t flowed through into the official measure,” he said. “If it doesn’t — I still think it will — but if it doesn’t, I think we’re going to have a hard time. It’s definitely going to be more difficult to get to 2% overall if we do not see progress.”

Don’t miss these exclusives from CNBC PRO

  • Thursday’s biggest analyst calls: Tesla, Nvidia, Apple, Amazon, eBay, Zoom, JetBlue, BJ’s & more
  • If you’re worried about a correction and over-invested in Nvidia, replace it with these steady growth stocks instead
  • It may be time for investors to sell Nvidia on the next bounce, according to the charts
  • Wall Street is bullish on copper, thanks to AI. Analysts love these stocks, giving one 234% upside
  • ‘Hard to Ignore’: Jefferies says this cybersecurity stock could double after 75% rise in the past year 
  • A four-day work week could be coming as AI proliferates — and these companies could capitalize





Source link

Interest Rates,Inflation,Personal finance,business news
#Feds #Goolsbee #sniffing #needed #rate #cuts

You may also like