Fed's Goolsbee: US labor market still looks stable

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Fed News

Centralbanks,Unitedstates,Macroeconomics

Federal Reserve Bank of Chicago President Austan Goolsbee said on Friday that the labor market appears largely stable despite a bumpy series of data on the US jobs landscape, per Bloomberg.

Goolsbee further stated that any pause in the Fed’s rate-cutting cycle would come if conditions in inflation or the labor market change. Key quotes To me that feels like in that sustainable, full employment kind of place. 227K is a big number but need to look at averages. Jobs market cooling to something like sustainable full employment, want to keep it there. Last few months, the jobs number feels like a sustainable, full employment pace.

When prices are rising too quickly and inflation is above the Fed’s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.

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