Fed's Goolsbee comments to US economy today, signalling potential cutting rates in autumn, but not overacting to one month's data.
- What will determine the size of the rate cut, or if there is any action, will be the economic conditions.
- I fully understand why markets want to conclude a trend. We have been seeing the improvement we've wanted on inflation.
- The through-line of the data doesn't change based on one month's number.
- If unemployment is going to go up higher than 4.1%, that's the kind of thing the Fed has to respond to.
- If we stay restrictive for too long, we have to think about the employment mandate.
- The job of the central bank is to move in a steady way.
- I've been saying for a long time we'd never want to overreact to one month's data
- Small business defaults and delinquencies are rising and are in the warning sign stage.
- The economy still has crosscurrents. When conditions warrant a cut, there tends not to be just one.
- It is not a secret that Fed policymakers expect multiple cuts over the next year.
- The trends show inflation coming down across the board, and the labour market cooling.
- We're going to get a lot of information before the next meeting.
EURUSD (H1 interval)
EURUSD pair gains today almost 1.1% after weaker than expected NFP data. Goolsbee's comments didn't move Eurodollar, but markets may see those remarks as important because it's first Federal Reserve member comment after disappointing US macro readings.
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Source: xStation5
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