Fed's Goolsbee: 2023 a “hall-of-fame” year for reducing inflation
|President of the Federal Reserve (Fed) Bank of Chicago Austan Goolsbee threaded the needle on Thursday, joining other Fed Presidents in making public observations about inflation following the US Consumer Price Index (CPI) inflation print earlier in the day.
Key Highlights
- Goolsbee: 2023 was a hall-of-fame year for inflation reduction.
- Persistent shelter inflation in CPI components may have less implication for Fed's Personal Consumption Expenditures (PCE) targets.
- Persistent housing price inflation and potential supply shocks remain the key risks.
- Inflation itself will be the primary determinant of when and how much the Fed will cut rates.
- Goolsbee's personal Fed funds rate view is not the lowest dot on the plot, closer to the median.
- Fed is still on a comfortable path forward on inflation, will have to evaluate policy restrictiveness as inflation continues to decline.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.