Chicago Federal Reserve President Austan Ghoolsby said on Friday that he was volatile in quick cuts of interest rates as the threat increases both inflation and employment.
In a “Scokebox” interview with CNBC, central bankers showed pressure is on both sides of the Fed’s so-called double mission, with stable prices and low unemployment.
“This rise in inflation, which we’ve seen, coupled with the salary job numbers, put the central bank in a bit of awkward place where we’re getting degraded on both sides of the mandate at the same time,” Ghoolsby said. “I’m a bit wary of frontloading relying on too many rate cuts and getting rid of inflation.”
The Federal Open Market Committee voted to cut benchmark interest rates by a quarter point in September. Participants at the conference indicated that two more cuts could progress by the end of the year.
Goolsbee is a voting member of FOMC this year.
He expressed concern about both inflation and work photos, but added that the data “continue to refer to a rather stable labor market.”
“I believe that the underlying economy can be paid in stages, in a substantial amount from where it is, to fall over time,” Ghoulsby said.
