In an interview with CNBC on Friday, Federal Reserve Bank of Chicago President Austan Goolsbee said that a mild recession in the US was definitely on the table as a possibility, as reported by Reuters.
Additional takeaways
"When you have financial tightening occurring, that does the work of monetary policy."
"We still have several weeks before May meeting."
"I don't want to comment yet on what I am for at that meeting; still want to see the data."
"But let's be mindful we've raised a lot; some of the lag is coming through possibly in today's retail sales number."
"Inflation is coming down, still got clear stickiness on some inflation."
"Producer prices and retail sales show we are moving in right direction."
"I am focused on what is happening with credit conditions."
"We are spending too much time looking at wage growth as an indicator of prices."
"Wages do not serve as a leading indicator for inflation."
"We need to keep eye on prices series, not wages."
"I am going to spend next few weeks figuring out amount of credit tightening going on."
Market reaction
The US Dollar Index extends its recovery in the early American session after these comments and was last seen rising 0.3% on the day at 101.30.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
GBP/USD remains stronger as a Labour majority could lead to political stability
The Pound Sterling extends its winning streak, which began on June 27. The GBP/USD pair trades around 1.2740 during the Asian session on Thursday, which could be attributed to the softer data released from the United States on Wednesday.
EUR/USD holds position around 1.0800 as softer US data escalate odds of Fed rate cuts
EUR/USD continues its winning streak, trading around 1.0790 during the Asian session on Thursday. This upside is attributed to a decline in the US Dollar due to the escalated speculations of the Federal Reserve reducing interest rates in 2024.
Gold looks north amid light trading, focus shifts to US NFP
Gold price is looking to extend the previous upsurge early Thursday, sitting at the highest level in over a week near $2,360. Sustained US Dollar weakness alongside sluggish US Treasury bond yields underpin Gold price amid the July 4 US holiday-thinned market conditions.
Binance coin poised for an 11% crash
Binance Coin breached its ascending trendline support on Wednesday and declines 3% on Thursday. On-chain analysis reveals a long-to-short ratio below one, indicating bearish sentiment and suggesting a potential price downturn for BNB in the days ahead.
Could the post-UK elections market moves resemble 1997 and 2010?
Thursday's UK elections expected to bring political change. Similar developments in both 1997 and 2010 weighed on the Pound. History points to a significant easing in Pound volatility across the board. Recent FTSE 100 performance matches the 2015 pre-election moves.