Federal Reserve Bank of Chicago President Austan Goolsbee said on Friday that the longer-run trend of labor market and inflation data justify the Fed easing interest-rate policy soon and then steadily over the next year, per MarketWatch.
Key quotes The long arc shows inflation is coming down very significantly, and the unemployment rate is rising faster. Given the more favorable inflation data and the less favorable unemployment data, it is pretty clear that the path is not just rate cuts soon. Said he saw more warning signs about the cooling labor market. I don't want us to be basing decisions on one data point. If we remain tight for too long, we are going to have to deal with the employment side of the mandate.
When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback. How often does the Fed hold monetary policy meetings? The Federal Reserve holds eight policy meetings a year, where the Federal Open Market Committee assesses economic conditions and makes monetary policy decisions.
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