July 11, 2024 at 09:46PM
Federal Reserve Bank of Chicago President Austan Goolsbee is pretty happy with the CPI report for June:
June CPI report ‘excellent,’ improvement on shelter inflation
‘profoundly encouraging’
This is what a path
to 2% inflation looks like
As inflation falls,
leaving Fed policy rate steady means Fed is tightening policy
The reason to
tighten policy would be if economy is overheating
We are not
overheating
Labor market is
cooling, still strong
It doesn’t feel like
the beginning of a recession
Financial conditions
are pretty restrictive
I don’t like tying
our hands on policy decisions
Need to decide when
to cut rates, not trying to figure out a rate path for next seven
months
More on the report here ICYMI:
Forexlive Americas FX news wrap: CPI cools, Japan intervenes
This article was written by Eamonn Sheridan at www.forexlive.com.