Fed’s Goolsbee Describes Jobs Report as ‘Superb,’ Anticipates Rate Cuts Ahead, According to Reuters

Chicago Federal Reserve President Austan Goolsbee described the latest U.S. jobs report as “superb” on Friday, emphasizing that additional labor market data of this nature would increase his confidence that the economy is at full employment with low inflation.

“You really couldn’t ask realistically for a better report for the economy, especially combined with the news that the port strike on the East and Gulf Coasts is not going to be prolonged. These are two very positive developments for the economy,” Goolsbee stated during an interview with Bloomberg TV, following the Labor Department’s release of the September employment report. The report revealed a significantly higher-than-expected gain of 254,000 jobs and a decline in the unemployment rate to 4.1%.

“If we receive more reports like this, I’m going to feel much more confident that we are indeed settling into full employment.”

However, Goolsbee cautioned that the job market, when examined from various perspectives, is showing signs of cooling, and there are indications that inflation could fall short of the Federal Reserve’s 2% target. “There are strong data points alongside signs of weakness,” he noted.

With the U.S. central bank’s policy rates significantly above what most officials perceive as the eventual settling point, Goolsbee suggested it is appropriate for the Fed to decrease these rates “a lot” over the next 12 to 18 months, in line with the expectations of most policymakers.