Chicago Fed President Austan Goolsbee said on Friday that the US labour market remains “pretty stable” despite broader signs of slowing momentum. Speaking on the inflation outlook, he noted that the recent uptick in services inflation is unlikely to be driven by tariffs and cautioned against moving too quickly on rate cuts.
key remarks
- “What data we have still points to a pretty stable labour market right now.”
- “Uptick in services inflation is probably not from tariffs.”
- “Little wary about front-loading too many rate cuts and just counting on inflation going away.”
policy outlook
Goolsbee’s comments reflect the Fed’s cautious stance amid the government shutdown and patchy economic data flow. While markets increasingly expect a 25 bps cut at the October FOMC meeting, Goolsbee reiterated the need for a measured approach, stressing that inflation risks and employment trends must be weighed carefully before committing to deeper easing.
