Fed's Goolsbee (non-voter for 2024; voter for 2025): I don't think that cutting rates is a certainty - CBC interview (update)
- I don't like, as you know, tying our hands ahead of time when we got a lot of data to come in
- I do think that the- we set an interest rate more than a year ago at a high level because we were fighting inflation, and the economic conditions today are very different than they were when we set the rate at this level
- We're not in elections business
- I think it's a valid caution when rates are this high, if you take measure of how tight the Fed is as just a What's the rate minus what's the inflation rate, when you set a rate high like we have, and hold it there while inflation falls, you're actually tightening
- When you see consumer credit delinquencies, credit card delinquencies rising like they've been rising, those are warning signs. Now there's, there's some others that are more positive, but they're, they're definitely of concern
- If you keep too tight for too long, you will have a problem on the employment side of the Fed's mandate