Fed's Goolsbee is speaking on CNBC and further explaining his decision to keep rates unchanged at the reason FOMC rate decision where the Fed decided to cut rates by 25 basis points.. He was 1 of 2 dissenters who voted for no change in policy. Fed's Miran voted for a larger 50 basis point cut.

Goolsbee says:

  • Can't assume that current inflation will be transitory.
  • Waiting until Q1 for rate cuts would allow Fed to be assured inflation is coming down.
  • Measures of job market have been pretty stable.
  • Shifts in data like monthly payrolls have made it difficult to assess things like breakeven job creation rates.
  • To have both low hiring and low firing does not suggest a cyclical downturn.
  • Not hawkish on rates next year, feel optimistic rates can fall this year but uncomfortable frontloading loser policy.
  • Services inflation before the government shutdown was concerning.
  • There is nothing wrong with the argument that inflation will for next year, but need to be more certain.
  • Says he is below the medium term of 2026 rate cuts according to the dot plot.
  • Expects the unemployment rate to be pretty stable.
  • Prices are 1 of the main factors for consumers and businesses
  • We can ignore that prices have been rising for 4 years
Source: Investing Live