These are top 10 stocks traded on the Robinhood UK platform in July
Investing.com -- Austan Goolsbee, the President and CEO of the Federal Reserve Bank of Chicago, provided insights into the current state of the economy today. In a conversation with Yahoo Finance, Goolsbee discussed the recent job reports, stating that they were solid and indicative of a move towards full employment.
Goolsbee expressed optimism about the potential impact of tariffs on trade, stating that he is hopeful they will not pose a significant barrier. He also expressed satisfaction with the current trajectory of the economy.
In terms of inflation expectations, Goolsbee suggested that a recent consumer survey showing a rise in near-term inflation expectations was less influential to him. He pointed out that longer-run market-based inflation expectations indicate that the market believes the Federal Reserve will manage to stabilize inflation at 2%.
Goolsbee also touched on the Federal Reserve’s current position, stating they are on hold but anticipate the policy rate will be significantly lower in the next 12-18 months. However, he indicated that the speed at which rates decrease will be slower due to uncertainties.
The CEO emphasized the importance of reaching a settling rate on a ’judicious’ timetable. He clarified that the Federal Reserve does not target long-run rates, stating that it falls under the purview of the Treasury.
Goolsbee predicted that it would take longer than the end of 2025 to reach a neutral policy rate. He also reiterated his belief that the economy is on a path to 2% inflation. As inflation decreases, Goolsbee explained, the policy rate can be cut commensurately.
Goolsbee also addressed the issue of the Federal Reserve’s role in any sovereign wealth fund, stating that he does not believe the Fed would play a part in it. He added that the Federal Reserve’s balance sheet holdings are restricted by law and expressed his desire for the balance sheet to move to all Treasuries.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.