Fed's Goolsbee: If we make good progress on inflation, we need to factor that into rates

<ul><li>Goods price inflation is back to normal and surprising progress on services inflation too</li><li>Says they need to see more progress on housing inflation</li><li>When the unemployment rate goes up, it tends to go up rapidly; we haven't had that</li><li>We're coming into 2024 in a much better place than we came into 2023</li><li>The market should be focusing on economic data</li><li>"We are definitely not off the Golden Path"</li><li>The Fed is not facing an imminent threat from the labor market</li><li>If inflation progress reverses, it could merit a rate hike</li></ul><p>The comment on services inflation is one that I haven't heard before but overall, there's a clear message here:</p><blockquote>"If we continue making strides against inflation, we must reflect that in our policy rates," he said.</blockquote><p>That's a conditional call to cut.</p>

This article was written by Adam Button at www.forexlive.com.