Goolsbee: Still feels confident about reaching the “golden path” of a soft landing


  • Talking on CNBC at Jackson Hole
Greg Michalowski

  • Feels confident about a soft landing
  • Nothing has happened in the last 2 months to make me think that the “golden path” is not attainable
  • I don’t like to speculate on the future Fed action
  • It does feel like we are in a period where conditions continue to go as they have over the last couple of months, our argument will go toward how long do we keep rates at the same level
  • We have a couple of good months on improvement in inflation
  • There is still a long way to go
  • So far it seems like credit tightening has not materialized from banking issues
  • If the longer rates are going and it gives some constraint to the economy, maybe that is okay
  • Rise in bond yields may not be issue for economy
  • We can’t observe what the legs are we just have to wait and see
  • We haven’t seen consumer spending deteriorate like you’d normally see given the rise in yields
  • Some part of the consumer spending might be due to the pent-up demand from the supply constraints
  • Inflation is really not down to 3%. There is energy that can move around a lot.
  • I am in comfortable of declaring victory with inflation near 3%
  • I don’t think you can change the inflation target until you hit it. I think you have to go all the way.
  • I am willing to be patient in getting to a 2% target

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