Fed's Goolsbee Is 'Uneasy' About Front-Loading Too Many Rate Cuts

Watch Fed's Goolsbee Is 'Uneasy' About Front-Loading Too Many Rate Cuts - Bloomberg on Dailymotion

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00:00we have set a target of two percent inflation three percent inflation is too high and it's not

00:08you can't oh let's that's close enough let's be done no we we as a body made a sacred promise

00:16that we're going to get inflation back to two percent now that said if the through line is

00:24improving and in 2023 inflation way too high i came in in january of 23 inflation way too high

00:35mostly it's coming down all of 23 and mostly it's coming down for all of 24. now it seems to have

00:44kind of stalled out and if anything given warnings of going the wrong way so that makes me a little

00:51uneasy that said before we got into the bout of tariffs and inflation going the other way

01:00i am one of the people who believes that rates can go down a fair amount that basically

01:06we're at something like stable full employment with an unemployment rate in the low fours which is

01:15kind of where we would think it would settle that prices are sort of we're on their way back to two

01:23percent and so i said i thought rates could go down a fair amount i still basically think that

01:31but with the addendum it's kind of like at one point i i was younger but i i hired a trainer

01:39and the trainer said well what are your goals and i said well could you think i could get a six pack

01:46if i did enough wait listen can i get a six pack the trainer said blightly

01:52we all have a six pack of muscle underneath and and the message was it's not about how many

02:02how much weight your muscle can lift it's about what's on top of those muscles um and i feel a

02:10little bit like that here we've got a series of geopolitical and policy shocks that have come in

02:20that are masking in my in my view this underlying the economy is pretty strong and i feel like

02:28eventually we are going to be back to rates can come down a fair amount but in the near term i'm a

02:34little uneasy front loading too many rate cuts and counting on this will be transitory and inflation

02:44will go back down