Asking about surprisingly low jobless claims numbers.
Andrew Ross Sorkin
Austan Goolsbee
Not surprised by low jobless claims - labor market shows stability, cooling slowly. Low hiring/low firing indicates high uncertainty environment, not typical business cycle.
Asking if concern about labor market weakness that motivated recent rate cuts should be put aside.
Andrew Ross Sorkin
Austan Goolsbee
Has put that concern aside. Most important thing is getting inflation back to 2%. With convincing evidence of inflation returning to target, rates can come down 'a fair amount'.
Asking if he sees rates lower by year-end.
Andrew Ross Sorkin
Austan Goolsbee
Yes, but timing depends on convincing evidence inflation is returning to 2%. Recent CPI/PPI shows some encouraging signs but non-housing services inflation above 4% annualized remains concerning.
Challenging why Goolsbee called Powell a 'first ballot hall of famer' given 5 years of above-target inflation.
Joe Kernan
Austan Goolsbee
Fed deserves blame for moving too slowly on inflation, but Powell prevented financial crises (SVB collapse) and achieved largest single-year inflation drop without causing recession.
Asking about criminal subpoenas to Fed and whether Fed should be subject to inquiry.
Andrew Ross Sorkin
Austan Goolsbee
Criminal investigations of central banks happen in Zimbabwe, Russia, Turkey - not advanced economies. Attacking Fed independence will cause inflation to come roaring back.
Asking about taxpayer accountability for Fed spending versus policy independence.
Andrew Ross Sorkin
Austan Goolsbee
Fed has 60+ audits annually. Should have oversight of costs but not direct coercive control of budget due to policy differences over interest rates.