In an interview with National Public Radio (NPR) on Wednesday, Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee noted that some parts of the April inflation report represent the lagged nature of the data, adding that the Fed is still holding its breath.
Key takeaways
“It will take time for current inflation trends to show up in the data.”
“Right now is a time for the Fed to wait for more information, try to get past the noise in the data.”
“The Fed’s job is to be a steady hand not respond to daily gyrations of stock market or policy pronouncements.”
“Cannot jump to conclusions about long-term trends given all the short term volatility.”
Market reaction
The US Dollar stays on the back foot following these comments. At the time of press, the USD Index was down 0.57% on the day at 100.35.
