Fed's Goolsbee: Need to be a bit careful about getting aggressive

Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee said on Tuesday that there is low-hiring and low lay-off in the labor market, per Reuters.

Key takeaways

"We did not move the inflation target."

"Have to get inflation to 2%, period."

"Anyone saying we're raising the inflation target, that's dangerous talk."

"I think we are mildly restrictive."

"Neutral is below where we are now by 100-125 basis points."

"We need to be a bit careful about getting aggressive."

"I think rates can come down some if we're on a path to getting inflation back to target."

"Ultimately, Fed rate may settle at around 3% with inflation back to 2%, and I'm ok with that."

"Critically important that we maintain monetary independence."

"Labor market continues to cool at a mild, modest pace."

"Supply side of labor is moving all around with immigration."

Market reaction

These comments received a hawkish score of 6.2 from FXStreet Fed Speech Tracker. Nevertheless, FXStreet Fed Sentiment Index remains in the dovish territory below 100 after Goolsbee's remarks.

Meanwhile, the US Dollar Index clings to modest daily gains, slightly above 97.30.