Fed's Goolsbee: US credit conditions are tight and are getting tighter
Federal Reserve Bank of Chicago President Austan Goolsbee said on Sunday that central bank officials should be wary of keeping the restrictive policy in place longer than necessary.
Key quotes
Credit conditions seem tight and are getting tighter.
Unemployment is up, and that's a caution sign.
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.
The impact of past hikes may not be fully realized.
Market reaction
The US Dollar Index (DXY) is trading 0.01% higher on the day at 102.60, as of writing.
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