Fed's Goolsbee Backs July Hold as Weak Retail Sales Raise Watch on 2nd Reading
Updated
Updated · newsquawk.com · Aug 14
Fed's Goolsbee Backs July Hold as Weak Retail Sales Raise Watch on 2nd Reading
1 articles · Updated · newsquawk.com · Aug 14
Summary
Goolsbee said U.S. GDP and the labor market remain stable, backing the Fed’s July decision to leave rates unchanged while treating weak retail sales as only one month of soft data.
A second weak retail reading would be more concerning, he said, reinforcing a data-dependent approach that keeps consumption trends central to the next policy debate.
Two recent productivity readings were “very poor,” and Goolsbee said a persistent drop would challenge the AI-driven supply story that has supported disinflation and a soft-landing outlook.
Encouraging CPI reports still leave him wanting more evidence, and as a non-voter this year his remarks matter mainly as a signal that the committee’s center may also be comfortable with holding rates.