Fed's Goolsbee says inflation is above where we want it, monetary policy is working

<p>Federal Reserve Bank of Chicago President Austan Goolsbee speaking in a radio interview.</p><p>Headlines via Reuters:</p><ul><li>
It's possible we can get on 'golden path'</li><li>Monetary policy is
working</li><li>Overall level of
inflation is above where we want it</li><li>Clearly there are
risks</li><li>China, US govt shutdown
are among possible risks</li><li>We have also had
false dawns on inflation before</li><li>Want to see progress
on core inflation, especially goods and housing</li><li>Market's
expectations on inflation also has a major influence</li><li>I'd pay less
attention to wage growth as an indicator of inflation</li><li>We are very rapidly
approaching time when are argument is not about how high should rates
go, but rather how long rates have to stay high</li><li>Collectively Fed
forecast is that rates will have to stay up for a relatively extended
period</li><li>You can't change the inflation target until you've hit your inflation target</li><li>We have to get to the 2% inflation target, retain credibility</li><li>A possible UAW strike could have an impact, it could be material to our decisions</li></ul><p>There isn't much in these remarks that's not pretty much the Fed script at present. </p>

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