Fed’s Goolsbee Warns Debt-Limit Showdown Is Clouding Economic Outlook
- Chicago Fed chief says Congress must raise the borrowing limit
- Protracted showdown could reignite bank stress, Goolsbee says
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Federal Reserve Bank of Chicago President Austan Goolsbee said a protracted showdown over the debt ceiling will make the Fed’s job much more difficult as it tries to assess the impact of bank-sector turmoil, which he said is leading to tighter credit conditions.
“This whole argument about the debt ceiling comes at the worst possible time,” Goolsbee said Monday in an interview with Yahoo! Finance, calling a potential default a self-inflicted wound. “It just makes it extremely difficult to figure out what will be the conditions for economic growth and the job market.”