Fed's Goolsbee signals 'wait & see' mode 🗽VIX sell-off extends

Federal Reserve member Austan Goolsbee commented on the current U.S. monetary policy situation. Below are his key remarks, indicating the Fed is unlikely to rush towards easing monetary policy in the United States:

• "We cannot jump to conclusions about long-term trends given all the current short-term volatility."

• "The Fed's job is to maintain stability, not respond to daily fluctuations in the stock market or political announcements."

• "Right now, the Fed should wait for more data and attempt to separate real signals from background noise."

• "It will take time before current inflation trends become clearly visible in the data. Part of April's inflation data reflects the lagged nature of economic indicators. The Fed is still cautiously monitoring the situation."

VIX Index (Daily interval)

According to White House comments, the U.S. currently has more than 20-25 trade deals on the table, nearing finalization with multiple countries. VIX index futures recently experienced a sharp decline and today are dropping again, losing almost -1% after a sell-off comparable in scale to that seen in August 2024. A continued rebound scenario on Wall Street could further increase downward pressure on the VIX.

Source: xStation5