Fed's Goolsbee says central bank will 'fix' the US economy if it deteriorates
foxbusiness.comCircle Squared Alternative Investments' Jeff Sica argues there's a problem in the credit market as he weighs in on the market selloff.
Chicago Federal Reserve President Austan Goolsbee on Monday said that central bank policymakers will respond to any weakness in the U.S. economy as renewed recession fears sparked a broad market sell-off.
Goolsbee also indicated that interest rates may be too restrictive right now, though he declined to say whether policymakers would consider making an emergency rate cut.
«The Fed’s job is very straightforward: maximize employment, stabilize prices and maintain financial stability. That’s what we’re going to do,» he said during an interview with CNBC. «So if the conditions collectively start coming in like that on the through line, there’s deterioration on any of those parts, we’re going to fix it.»
WALL STREET'S FEAR GAUGE SPIKES TO HIGHEST LEVEL SINCE 2020 AS GLOBAL TURMOIL DEEPENS
Chicago Federal Reserve President Austan Goolsbee also indicated that interest rates may be too restrictive right now. (REUTERS/Brendan McDermid / Reuters Photos)
Goolsbee's comments come amid worsening global market turmoil.
The Dow Jones Industrial Average tumbled more than 1,000 points early Monday, while the tech-heavy Nasdaq Composite slid 3.9%. The S&P 500 slid another 3%. The indexes later recouped some of those losses.
Market jitters began last week after the worse-than-expected July jobs report, which showed that employers added just 114,000 jobs last month and the jobless rate unexpectedly climbed to 4.3%.
The rise in unemployment triggered the so-called Sahm rule, an indicator that is used to provide an early recession signal. The rule stipulates that a recession is likely when the three-month
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