Fed’s Goolsbee: Inflation has been above target for four and a half years

Chicago Fed President Austan Goolsbee commented on Friday that inflation has remained above target for over four and a half years. He noted that waiting for updated economic data would have been beneficial, yet most data indicates stable economic growth, with the labor market only moderately cooling. This statement suggests ongoing economic growth in the U.S., which may impact the Federal Reserve's policy decisions. The persistent inflation could lead to a reevaluation of the necessity for rate hikes, causing the market to react sensitively to such perspectives. If indications of rising interest rates emerge, the strength of the dollar may increase. However, since no specific price levels, support, or resistance are mentioned, a neutral outlook is warranted at this time. Traders should closely monitor economic data leading up to the next Federal Open Market Committee (FOMC) meeting to prepare for potential rate hike considerations.