💵Dovish Fed's Goolsbee remarks confirm aggressive Fed's policy easing cycle

Austen Goolsbee, chair of the US Chicago Federal Reserve, was very dovish yesterday, confirming Powell's stance from the last meeting. Here are Goolsbee remarks: 

• If conditions continue like this, there are a lot of cuts to come over the next 12 months; rates need to come down significantly.
• We are shifting back to a normal dual mandate mode. The cut of 50 bps to start makes sense.
• Consumer sentiment is not a good indicator of spending behavior. It's a little bit of a cautionary period.
• GDP growth, consumer spending, and wage growth have been strong.
• The rise in delinquencies is also a warning sign.
• Directionally, unemployment is rising, but the level is still low.
• 0.7% increase in unemployment over a year is usually a warning sign of recession.
• Overall, the economy has some warning signs, and some strength.
• Labor market deterioration typically happens quickly.
• The jobless rate is at levels many consider as full employment.
• Keeping rates at decade-high does not make sense when you want things to stay where they are.
• I am comfortable with the Fed's 50 bps rate cut, it shows the Fed is focused on risks to employment, not just inflation.

Despite dovish signals from the Fed, EURUSD drops amid weaker than expected macro readings from European economies. Today, German Ifo sentiments came in again weaker than expected; both current conditions and business conditions came in lower than expected.

Source: xStation5