Fed's Goolsbee (2027 voter) says energy shocks can pose risks to both sides of the Fed mandate, while he doesn't know if they can cut rates again and it depends on how long the war will last
Says:
- Possible that energy prices could stay high after the war ends.
- Likely to see a downturn in consumer sentiment.
- It's not an obvious playbook for what to do and it's a bad situation for a central bank.
Context
Fed's Goolsbee indicates that energy price pressures are a dual concern for the Fed, potentially undermining both growth and inflation targets. His uncertainty about future rate cuts highlights the Fed's cautious stance, particularly as geopolitical tensions remain unpredictable; this could influence market sentiment and USD valuations depending on how these risks evolve.
Trade the TapeGet this analysis live, the moment it breaksNewsquawk's real-time dashboard delivers market-moving headlines and instant context to your desk before the rest of the market reacts.
Open Dashboard#UNITED STATES#USD#JAPAN#UNITED KINGDOM#IMPORTANT#FOREX#FIXED INCOME#ASIAN SESSION#FEDERAL RESERVE#CENTRAL BANK#DXY