(Bloomberg) -- Federal Reserve Bank of Chicago President Austan Goolsbee said policymakers shouldn’t place too much weight on the traditional economic idea that steep job losses are needed to quell inflation, which he said could lead officials to raise interest rates too high.Most Read from BloombergChina Puts Evergrande’s Billionaire Founder Under Police ControlElon Musk Wins US Space Force Contract for StarshieldPeloton Soars After Deal With Lululemon to Share Fitness ContentCitadel Is Ready t
This traditionalist view, Goolsbee said, “misses key features of our recent inflationary experience and that, in today’s environment, believing too strongly in the inevitability of a large trade-off between inflation and unemployment comes with the serious risk of a near-term policy error.” The comments were prepared for delivery Thursday at the Peterson Institute for International Economics in Washington.
Goolsbee said policymakers should instead focus on how different components of core inflation are decelerating — with cooling still needed especially in housing inflation — as well as monitor productivity growth, not obsess too much on near-term real wages and keep an eye on inflation expectations.
Goolsbee, a voter on policy this year, didn’t say whether he favors another increase or not, though he called progress so far on inflation “really excellent.” He echoed comments made earlier this week that a soft landing — where inflation fully eases without causing a recession — is possible, but risks remain.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed’s Goolsbee Says Traditional Economic View May Cause OvershootFederal Reserve Bank of Chicago President Austan Goolsbee said policymakers shouldn’t place too much weight on the traditional economic idea that steep job losses are needed to quell inflation, which he said could lead officials to raise interest rates too high.
Read more »
Fed's Goolsbee sees risk of 'error in view that low inflation needs high unemploymentKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Read more »
Fed's Goolsbee sees risk of 'error in view that low inflation needs high unemploymentBy Howard Schneider WASHINGTON (Reuters) - The U.S. Federal Reserve may be on the cusp of
Read more »
Feds unlock another $20-billion for low-cost rental construction financing, Freeland saysThe federal government says the new funding will boost rental construction by 30,000 units annually
Read more »
New Jersey Says NYC Congestion Pricing Suit Being Put in Slow Lane by FedsNew Jersey accused the US Department of Transportation of stalling its lawsuit challenging federal approval of New York City’s controversial congestion-pricing plan.
Read more »