Fed’s Goolsbee: Mild recession is definitely on the table as a possibility
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In an interview with CNBC on Friday, Federal Reserve Bank of Chicago President Austan Goolsbee said that a mild recession in the US was definitely on the table as a possibility, as reported by Reuters.
“When you have financial tightening occurring, that does the work of monetary policy.”
“We still have several weeks before May meeting.”
“I don’t want to comment yet on what I am for at that meeting; still want to see the data.”
“But let’s be mindful we’ve raised a lot; some of the lag is coming through possibly in today’s retail sales number.”
“Inflation is coming down, still got clear stickiness on some inflation.”
“Producer prices and retail sales show we are moving in right direction.”
“I am focused on what is happening with credit conditions.”
“We are spending too much time looking at wage growth as an indicator of prices.”
“Wages do not serve as a leading indicator for inflation.”
“We need to keep eye on prices series, not wages.”
“I am going to spend next few weeks figuring out amount of credit tightening going on.”
The US Dollar Index extends its recovery in the early American session after these comments and was last seen rising 0.3% on the day at 101.30.
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