Federal Reserve Bank of Chicago President Austan Goolsbee, said on Tuesday that they need to be cautious about raising interest rates after recent development in the banking sector. He mentioned that the central bank needs to assess the potential impact of the financial stress on the real economy.
Speaking at the Economic Club of Chicago, Goolsbee said that they should gather further information and be careful about raising rates “too aggressively” until they see how much work the headwinds are doing for the central bank in getting inflation down. According to him, markets and financial issues should not drive actions from the Fed.
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