Fed's Goolsbee says he has some concerns about keeping rates too high for too long

<p> Federal Reserve Bank of Chicago President Austan Goolsbee in a radio interview, headlines via Reuters:</p><ul><li>
Of all pieces of data, housing inflation is most paramount</li><li>Market-based
inflation expectations have been anchored</li></ul><ul><li>
Have some concern about keeping rates too high for too long</li><li>Once you believe you
are on path to 2% inflation, amount of restrictiveness needs to be
less</li><li>Data will determine how fast we go</li></ul><p>—</p><p>Goolsbee tends to be less hawkish than his FOMC colleagues. So his "concern about keeping rates too high for too long" is not out character. Unlike Waller earlier:</p><ul><li><a href="https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-us-dollar-slumps-after-waller-puts-rate-cuts-on-the-table-20231128/" target="_blank" rel="follow" data-article-link="true">Forexlive Americas FX news wrap: US dollar slumps after Waller puts rate cuts on the table</a></li></ul><p>From the wrap:</p><ul><li>Fed Governor Chris Waller made a surprise turn, saying there are 'good arguments that if inflation continues falling for several more months that you could lower the policy rate'. It's the first time a Fed official has put rate cuts on the table and it's especially surprising coming from the normally-hawkish Waller.</li></ul><p>Still, Goolsbee backing it up in his interview is indicative of a reduction in hawkishness at the Fed. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.