Fed's Goolsbee (2028 Voter) says he's not surprised by low initial jobless claims numbers; Chicago Fed data showed stability in the labour market

Fed's Goolsbee's remarks highlight a mixed outlook despite low initial jobless claims, pointing to ongoing business uncertainty and the need for inflation to return to 2%.

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Fed's Goolsbee (2028 Voter) says he's not surprised by low initial jobless claims numbers; Chicago Fed data showed stability in the labour market

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US Initial Jobless Claims (Jan/10) 198K vs. Exp. 215K (Prev. 208K, Rev. 207K)

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  • Low-hiring, low-firing environment does highlight business uncertainty.
  • Growth has been pretty solid, driven by AI and consumer spending.
  • Reiterates that the most important thing is getting inflation back to 2%.
  • "Rates can still go down a fair amount".
  • See rates lower down at the end of the year, than they are now.
  • Within the CPI and PPI data, there is some encouragement, but are still things that get his attention.
  • Recent inflation data shows a possible waning of the tariff impact.
  • Non-housing services is disturbing, and healthcare inflation is also discouraging.
  • Expects to see Fed rate cuts this year, but needs data to affirm outlook.
  • Agrees with Powell's argument over investigation into Fed.
Context

His expectations for rate cuts later this year suggest a pivot in monetary policy, reinforcing the view that the Fed may respond to labor market stability and encouraging inflation data while remaining wary of looming challenges in non-housing services and healthcare inflation.

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