Fed's Goolsbee (2023 voter) says credibility of the Fed has kept inflation expectations anchored; a lot of inflation progress also from supply shocks

• On track to 2% inflation.


• Inflation is coming down exactly as the Fed want.


• Housing inflation is the "highlight" of what he is watching, if it returns to pre-COVID levels than the Fed would be on the path to 2%.


• Shocks remain a possibility, previous soft landing have been derailed by those.


• Labour market is very strong and has gotten into a better balance.


• If inflation is not on path to 2% even unemployment rate is going up, we would not stop tightening.


• But employment side is looing excellent and inflation coming down rapidly.


• Not nervous about "hypothetical" trade-off between employment and inflation.


• Asked what he sees as biggest possible to risk to US economy in coming year and says "meltdown in China".


• If inflation progress stops, or goes wrong way, we will do what it takes. 

Analysis details (15:05)

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  On Tuesday, Goolsbee said all pieces of data, housing inflation is most paramount and market-based inflation expectations have been anchored.


• Added he has some concerns about keeping rates too high for too long.

01 Dec 2023 - 15:00- Fixed IncomeData- Source: Newswires