{"id":108311,"date":"2024-11-15T23:34:33","date_gmt":"2024-11-15T19:34:33","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=108311"},"modified":"2024-11-15T23:38:00","modified_gmt":"2024-11-15T19:38:00","slug":"feds-goolsbee-the-fed-needs-to-focus-on-longer-trends","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/feds-goolsbee-the-fed-needs-to-focus-on-longer-trends\/11\/15\/market-updates\/","title":{"rendered":"Fed&#8217;s Goolsbee: The Fed needs to focus on longer trends"},"content":{"rendered":"\n<p>Federal Reserve Bank of Chicago President Austan Goolsbee noted on Friday that markets tend to overreact to interest rate changes and that the Fed should maintain a slow and steady approach to reaching the neutral rate.<br><br><strong>Key Quotes<br><\/strong><br>In regards to a December rate cut or pause. I don&#8217;t like tying our hands; still more data to come.<br><br>Markets react immediately and in most extreme terms; that&#8217;s not the Fed&#8217;s timetable.<br><br>The Fed needs to focus on longer trends.<br><br>We are going to be looking at rate cuts along the lines of September Fed policymaker projections.<br><br>I am personally comfortable with not charging right towards neutral and slowing down as we approach it.<br><br>Inflation numbers have to keep improving.<br><br>If we started to see reversal on inflation progress, we would have to figure out if it is a bump.<br><br>Not a lot has changed on that in the last couple weeks.<br><br>Recent inflation has been a little higher than the target; if that is extended, it&#8217;s too high.<br><br>There&#8217;s a lot of volatility in the inflation data series.<br><br>Neutral is significantly lower than where the Fed policy rate is now.<br><br>If productivity growth stays higher than trend, we need to be careful relying on GDP growth rate to check if the economy is overheating.<br><br>I am perfectly comfortable with disagreement within Fed over where the neutral rate is.<br><br>The dispute over the neutral rate could support slower cuts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal Reserve Bank of Chicago President Austan Goolsbee noted on Friday that markets tend to overreact to interest rate changes and that the Fed should maintain a slow and steady approach to reaching the neutral rate.Key QuotesIn regards to a December rate cut or pause. I don&#8217;t like tying our hands; still more data to &hellip;<\/p>\n","protected":false},"author":13,"featured_media":102531,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[6856,6885,6987],"class_list":["post-108311","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-economic-data","tag-fed","tag-inflation"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/108311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=108311"}],"version-history":[{"count":5,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/108311\/revisions"}],"predecessor-version":[{"id":108322,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/108311\/revisions\/108322"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/102531"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=108311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=108311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=108311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}