Fed’s Goolsbee: Labour market is at full employment

Speaking to Chicago public radio station WBEZ, Chicago Federal Reserve Bank President Austan Goolsbee warned on Thursday that if the strike continues, supply-chain disruptions could exert upward pressure on prices and negatively impact the economy.

Key Quotes

Dockworkers’ strike was predicted, retailers have been stockpiling and have about two weeks of supplies. After that, we will see more of an effect.

Dockworkers’ strike could have supply-chain issue effects, leading to some price increases.

Dockworkers’ strike could start as an inconvenience but get worse as it continues.  

We have largely gotten inflation down.  

The new inflation numbers are at the Fed’s target; the labour market is at full employment.  

25 bps vs. 50 bps cut is not as important as significantly reducing rates over the next 12 months to reach neutral.  

There has been a ‘partisanization’ of consumer confidence readings, making them less informative for consumer spending.