2024-02-14 17:14:00
Chicago Federal Reserve President Goolsby said on the 14th that the U.S. should not wait until inflation falls to the Federal Reserve’s target of 2% before cutting interest rates. Photographed in March 2008 (2024 Reuters/Jason Reed)
(Reuters) – Chicago Federal Reserve President Goolsbee said on Wednesday that the U.S. should not wait to cut interest rates until inflation has fallen to the Federal Reserve’s target of 2%.
“Even if inflation rises slightly over the next few months, that would be consistent with a path back to our goal,” Goolsby said. I don’t support it.”
The US consumer price index (CPI) for January announced on the 13th showed a 3.1% increase compared to the same month last year, which was slower than the previous month, but was lower than the market estimate of 2.9% mainly due to rising housing costs. exceeded.See more
The governor said that housing cost inflation was a “deepening mystery” and that he was keeping a close eye on it.
However, he cautioned that long-term, broad-based trends are more important. “We shouldn’t get carried away just because the CPI for the month is higher than expected. It’s absolutely clear that inflation is coming down,” he said during a question-and-answer session.
He also noted that the core personal consumption expenditure (PCE) price index, which excludes volatile food and energy prices, has remained at a favorable level recently. “Lowering rates should be coupled with confidence that (inflation) is on track to achieve its goal,” he said, adding, “If the rate remains suppressed for too long, we will have to worry regarding employment, which is one of the Fed’s responsibilities.” It’s worth recognizing when it comes out.”
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