09/28/2023 – 11:53
The president of the Federal Reserve (Fed, the North American central bank) of Chicago, Austan Goolsbee, stated this Thursday, 28, that he is “comfortable” with focusing more on how long interest rates will remain at the current level, in instead of focusing on their exact level. At the same time, he did not rule out that, if the situation requires it and there is no progress in prices, there may be an adjustment in policy.
Goolsbee, who has the right to vote on monetary policy decisions this year, addressed the topic during a question and answer session, after a speech in Washington, at the Peterson Institute for International Economics.
The leader said he has not yet decided what he will do in the next monetary policy decision, on November 1st.
The president of the Chicago Fed defended the importance of reaching the agreed target of 2%.
After this mission was accomplished, however, he argued that it would be necessary to debate the issue within the Fed. Goolsbee considered that inflation targets “give a false sense of precision”, in a “variable that has noise”.
He was also asked about the ongoing strike at automakers in the US. According to him, the Fed monitors the issue and the question is whether an extended shutdown could affect the North American Gross Domestic Product (GDP).
Regarding the growing increase in Treasury rates, he said he is “still trying to process” why longer-term rates are advancing.
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