TELETRADER News
9/28, 3:20 PM
(Source: TeleTrader)
Fed's Goolsbee: Inflation can return to 2% without recession
Federal Reserve Bank of Chicago President Austan Goolsbee said on Thursday that the Fed has the chance to bring inflation down to the 2% target without triggering a recession. He cited analysts who said the target will be reached "soon" and "without further policy tightening."
Goolsbee said housing will be a "key" factor in the course of inflation for the next few quarters, warning that rising home prices could also boost market rents. In terms of the economic outlook, he listed a number of downside risks, including a rise in oil prices, lagging industrial activity in China, a protracted strike of US auto workers, and a possible government shutdown.