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Posted 3 hours ago
Fed's Goolsbee: Massive Budget Deficits Act as Economic Stimulus
Chicago Fed President Goolsbee warns that large fiscal deficits function as demand stimulus and risk overheating the economy. His comments add pressure to the inflation narrative driving Fed policy; with PCE at 3.7% against a 2% target, deficit concerns reinforce the case for persistent higher rates. USD supported.
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3 hours ago
Fed's Goolsbee warns five years above inflation target poses risk
Chicago Fed President Goolsbee signaled concern over persistent inflation above the 2% target, flagging the central bank's extended overshoot as a policy risk. His rhetoric reinforces pressure on the Fed's reaction function ahead of PCE and employment data due today, which will determine whether rate cuts remain on the table or pause.
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