|

Fed’s Goolsbee: We will get inflation to 2%

Austan Goolsbee, President of the Federal Reserve (Fed) Bank of Chicago, told AP at the Semafor World Economy conference on Tuesday that the longer the Middle East concerns go, the cut could be pushed out of 2026.

Key takeaways:

There are circumstances where rates can go up, and circumstances for a hold, or decreases.

My concern is how long is this going to last.

The longer this goes, if inflation stays up, that pushes cuts out of 2026.

If inflation doesn't show improvement, time for optimism gets postponed.

We have to wait and see what happens with oil markets.

If saw progress on core inflation, would be feeling better, even if headline inflation was high.

We will get inflation to 2%.

If inflation is 4%, nobody should be thinking rates should go back to 2%.

We've had good news on housing inflation.

I have a lot of respect for Kevin Warsh.

I'm not nervous as long as people come with the Fed mindset that the law gives us a job about the economy, not electoral politics.

I think Warsh will come with that attitude.

Normally don't tighten into a supply shock. Inflation expectations so far are anchored.

If gas gets to $5 and stays there for months, inflation expectations could get unanchored."

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.39%-0.56%-0.41%-0.30%-0.61%-0.79%-0.48%
EUR0.39%-0.16%-0.02%0.09%-0.23%-0.41%-0.10%
GBP0.56%0.16%0.15%0.27%-0.07%-0.24%0.07%
JPY0.41%0.02%-0.15%0.12%-0.19%-0.37%-0.06%
CAD0.30%-0.09%-0.27%-0.12%-0.32%-0.48%-0.19%
AUD0.61%0.23%0.07%0.19%0.32%-0.18%0.12%
NZD0.79%0.41%0.24%0.37%0.48%0.18%0.31%
CHF0.48%0.10%-0.07%0.06%0.19%-0.12%-0.31%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Author

Agustin Wazne

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

More from Agustin Wazne
Share:

Editor's Picks

AUD/USD meets support near 0.7150

AUD/USD comes under renewed and quite strong selling pressure ahead of the Asia opening bell on Friday, drifting back toward multi-day troughs near 0.7150, where it seems to have met some decent contention for now. The Aussie’s decline follows the inflation-reignited uptick in the Greenback in response to robust US factory-gate prices in August.


USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold remains weak, retargets $4,350

Gold keeps the choppy price action on Thursday, now slipping back toward the $4,350 region per troy ounce amid the robust bounce in the US Dollar as well as rising US Treasury yields across the curve, particularly following US Producer Prices and ahead of Friday’s more relevant US CPI data.

Bitcoin holds steady on positive ETF flows despite short-term holders cashing in

Bitcoin's exchange-traded funds (ETF) demand regime has notably shifted, with 30-day net inflows reaching $21.9 billion, according to a Thursday post by CryptoQuant. The data suggests that the average Bitcoin held through spot ETFs is now in profit, with the realized price of the ETF cohort standing at roughly $72,000 to $73,000.

ECB recap: A hawkish hike despite downside growth risks
The European Central Bank (ECB) increased the Deposit Facility Rate to 2.50%, the Refinancing Rate to 2.65% and the Marginal Lending Facility to 2.90%, effective from September 16. The decision was accompanied by a clear warning that the outlook remains highly uncertain, with risks tilted to the upside for inflation and to the downside for growth.
Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight
The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.