Fed's Goolsbee (2027 Voter) says we have been above the target for five straight years, via AP Interview
Importance
Level 1
- There are circumstances where rates can go up and circumstances for a hold, or decrease.
- We have to pay attention to inflation expectations.
- His concern is how long this is going to last.
- The longer it last, if inflation stays up, it pushes cuts out of 2026.
- If inflation does not show improvement, time for optimism gets postponed.
- If saw progress on core inflation, he would be feeling better, even if headline inflation was high.
- We will get inflation to 2%.
- Have had good news on housing inflation.