More Goolsbee:If the Fed sees lack of progress on the price side, it will have to tighten

<p>More from Fed's Goolsbee is on the wires saying:</p><ul><li>If Fed sees lack of progress on the price side, it will have to raise restraint.</li><li>Trying not to put much weight on conventional measures of overheating</li><li>Have not decided what to do at the next meeting</li><li>Recent inflation was mostly supply though there was a demand component</li><li>The Fed will have a legitimate debate about how the current framework worked in this period of inflation</li><li>Inflation targets do risk giving a false sense of precision around a variable that is noisy</li><li>It will matter a lot how long auto strike lasts in terms of its GDP impact</li><li>Auto strikes have not had a historical large impact on inflation. However current capacity and inventory situation is different</li><li>Fed is trying to get a handle on whether an extended strike might lead to different price outcomes</li><li>Have not been a big fan of an explicit fed target</li><li>Once Fed his back to 2% target or on a clear path to it, then it would be perfectly appropriate to discuss the target itself.</li><li>If long continues to increase, Fed will have to take account of that as a form of tightening</li></ul><p>Goolsbee is more of a dove. He is a voting member on the board this year.</p>

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