2023-07-09 16:53:00
© Archyde.com. US Federalist Goldsby comments on the sudden labor market data!
Arabictrader.com – In an interview with a newspaper, the President of the US Federal Reserve Bank in Chicago, Austin Goolsby, said that they do not need a recession to get rid of concerns, adding in his comment on the recently released employment data with the following points:
You shouldn’t count too much on just one month. Obviously, the US job market is strong, but it is starting to cool off. We want a more sustainable pace of job gains. Be careful not to take wage data as a key indicator of inflation, as prices move first, then wages. The job market is great, returning to a balanced and sustainable level. The main goal of the US Federal Reserve Bank is to reduce inflation. I think the Fed can avoid a recession. The US Federal Reserve can bring the unemployment rate down to a recessionary level and lower prices. There is a lag in monetary policy. Commodity inflation is the main reason why inflation remains generally high.
It is noteworthy that the chief economist of the financial services company Allianz, Ludovic Sobran, previously stated that the possibility that policy makers at the US Federal Reserve and the European Central Bank will exaggerate the tightening of monetary policy and what it entails is now one of the most prominent threats facing the global economy.
Speaking to Bloomberg TV, Sobran explained that his expectations regarding a possible soft landing scenario hinge on policymakers not being extravagant in their campaign to tame high inflation, adding that one of the main risks to the economy is the risk of mistakes on the part of the European Central and the US Federal Reserve on policy, and this is a combination. Passive policy risk between fiscal and monetary tightening at the same time.
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