Fed's Goolsbee: So far we are on a good path on inflation, but not there yet

<p>Fed's Goolsbee is on CNBC and says: </p><ul><li>If coming from term premia, we have to take that into account.</li><li>You cannot answer what number on long-term yield equals enough tightening.</li><li>We are also getting positive supply-side developments in the economy.</li><li>The economy is weakening.</li><li>Job market is getting into better balance.</li><li>So far, the slowdown is what you would want, toward a more balanced growth and sustainable level.</li><li>Inflation has come down a lot.</li><li>We might equal the fastest drop in inflation in the last century.</li><li>As long as we are making progress on inflation, the topic is then only how long we keep rates at this level.</li><li>Inflation is more important part of the mandate right now.</li><li>I don't like precommitting what rates will be at the next meeting.</li><li>Still a lot of data to parse before then.</li><li>My conditions for Fed being done with rates are that we are clearly back on path to get inflation back to 2%</li><li>So far we are on a good path on inflation, but not done yet</li><li>Priority for changing rates stances inflation rate</li><li>Financial conditions clearly matter, but market doesn't get to tell the Fed what to do.</li><li>There is possibility of the "golden path" that allows us to get inflation down without recession</li></ul>

This article was written by Greg Michalowski at www.forexlive.com.