Central Banks
Goolsbee Says Fed Won’t Overreact to One Month’s Data
- Chicago Fed chief says job is to figure out ‘through line’
- Law says Fed has to respond to higher unemployment, he says
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Federal Reserve Bank of Chicago President Austan Goolsbee emphasized the central bank will not overreact to any one report, adding policymakers will get a lot of data prior to the Fed’s next meeting.
Goolsbee, who spoke on the heels of the release of a weaker-than-expected employment report, said it’s the Fed’s job to figure out the “through line” of the data and move in a “steady” way. Still, he noted if rates stay restrictive too long, policymakers have to think about the employment side of the mandate.