Fed's Goolsbee says US credit conditions are tight and are getting tighter


Federal Reserve Bank of Chicago President Austan Goolsbee spoke in an interview with CBS’ Face the Nation on Sunday:

  • US credit
    conditions are tight and are getting tighter
  • no certainty the Fed will cut interest rates next month, but not doing so could damage the labour market
  • “When you set a rate high like we have and hold it there
    while inflation falls, you’re actually tightening,”
  • the economic data is a mix of positive indicators and
    some that are more concerning
  • “If you keep too tight
    for too long, you will have a problem on the employment side of
    the Fed’s mandate.”

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