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