Federal Reserve Bank of Chicago President Austan Goolsbee is pretty happy with the CPI report for June:
June CPI report ‘excellent,’ improvement on shelter inflation
‘profoundly encouraging’This is what a path
to 2% inflation looks likeAs inflation falls,
leaving Fed policy rate steady means Fed is tightening policyThe reason to
tighten policy would be if economy is overheatingWe are not
overheatingLabor market is
cooling, still strongIt doesn’t feel like
the beginning of a recessionFinancial conditions
are pretty restrictiveI don’t like tying
our hands on policy decisionsNeed to decide when
to cut rates, not trying to figure out a rate path for next seven
months
More on the report here ICYMI:
Forexlive Americas FX news wrap: CPI cools, Japan intervenes
This article was written by Eamonn Sheridan at www.forexlive.com.
