Fed's Goolsbee Says Fed Will Need to Monitor Risks of Overshooting on Rates

<p>Fed's Goolsbee Says Fed Will Need to Monitor Risks of Overshooting on Rates</p><p><a href="https://www.wsj.com/economy/central-banking/austan-goolsbee-says-fed-will-need-to-monitor-risks-of-overshooting-on-rates-9acab785?mod=latest_headlines" target="_blank" rel="nofollow">FULL STORY</a></p><p>A sustained rise in long-term rates can ‘have a very substantial effect on real economic performance,’ the Chicago Fed president says
</p><ul><li>“The historical evidence suggests that long rates, even more than short rates, have a very substantial effect on real economic performance in a number of predictable areas—construction, investment, consumer durables,”</li><li>“If that is sustained, the Fed will have to think about the tightening impact of those credit conditions on economic performance, and would there be dangers of overshooting.”</li></ul>

This article was written by Ryan Paisey at www.forexlive.com.