Chicago Fed President Austan Goolsbee has not ruled out a potential rate cut in March, indicating that he needs to see more data showing progress on inflation. Goolsbee stated that strong jobs data does not necessarily mean the economy is overheating and that an inverted yield curve is typically not a recession indicator. He also refrained from speculating on a potential 50 basis points cut. The market is reacting to these comments with uncertainty, as Treasury yields have remained relatively unchanged. Goolsbee also suggested that if the U.S. economy continues to grow with declining inflation, the Fed may have to consider the potential for more noninflationary growth due to gains in worker productivity.
Treasury yields a touch lower as bond markets reconcile to no March rate cut https://t.co/xHrskfqIDz
Treasury yields little changed as investors fret over monetary policy outlook https://t.co/nj09HB6wHW
Uncertainty creeps back into US Treasury market after Fed, blockbuster data https://t.co/DoDk6TbJ9W https://t.co/LEYnUE1uMT
⚠️ ANALYSIS-UNCERTAINTY CREEPS BACK INTO US TREASURY MARKET AFTER FED, BLOCKBUSTER DATA (Reuters) A rethink on when the Federal Reserve will cut interest rates is reverberating through the fixed income market, heightening risk for those betting the explosive rally that took… https://t.co/OApg7MnMIK
Goolsbee: The longer the U.S. economy continues to grow and add jobs solidly with declining inflation, the more Fed officials may have to rethink the potential for more noninflationary growth due to gains in worker productivity, or output per hour worked https://t.co/4JGSyq6vYK
Chicago Fed President Austan Goolsbee reiterated that he’d like to see more of the favorable inflation data published in recent months but did not explicitly rule out the potential for a rate cut in March https://t.co/SLltgoQ2sB
Some headlines from @mckonomy just now with @Austan_Goolsbee of the Chicago Fed: NEED TO SEE MORE DATA SHOWING INFLATION PROGRESS WON'T SPECULATE ON POTENTIAL FOR 50 BPS CUT STRONG JOBS DATA DOESN'T NECESSARILY MEAN OVERHEATING
🔴 FED'S GOOLSBEE: INVERTED YIELD CURVE, TYPICALLY, IS NOT APPLICABLE AS A RECESSION INDICATOR.
🔴 FED'S GOOLSBEE: STRONG JOBS DATA DOESN'T NECESSARILY MEAN OVERHEATING.
❖ GOOLSBEE: WON'T SPECULATE ON POTENTIAL FOR 50 BPS CUT
🔴 FED'S GOOLSBEE: I WON'T SPECULATE ON THE POTENTIAL FOR A 50 BPS CUT.
FED'S GOOLSBEE REPEATS DOESN'T WANT TO RULE OUT MARCH RATE CUT
❖ FED'S GOOLSBEE REPEATS DOESN'T WANT TO RULE OUT MARCH CUT
🇺🇸 *CHICAGO #FED PRESIDENT AUSTAN GOOLSBEE COMMENTS ON BLOOMBERG TV *FED'S GOOLSBEE REPEATS DOESN'T WANT TO RULE OUT MARCH CUT *GOOLSBEE: NEED TO SEE MORE DATA SHOWING INFLATION PROGRESS
🔴 FED'S GOOLSBEE: I NEED TO SEE MORE DATA SHOWING INFLATION PROGRESS.
🔴 FED'S GOOLSBEE: I DON'T WANT TO RULE OUT A MARCH CUT.
Treasuries Reckon If Fed March-Cut Isn't Likely, Neither Is May https://t.co/gTysMxAS2l