In an interview with The Wall Street Journal, Chicago Fed President Austan Goolsbee emphasized the necessity for Fed to closely monitor long-term bond yields.
“A sustained rise in long-term rates can have a very substantial effect on real economic performance,” he warned.
In the ongoing debate on the future of interest rates, Goolsbee stated, “It’s too soon to say whether or when the central bank would turn its focus to lowering rates.”
Despite the challenging economic environment, Goolsbee projected an optimistic scenario: “The US economy can stay on the golden path in which inflation declines closer to the Fed’s 2% target without a significant rise in unemployment.”
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