Federal Reserve Goolsbee: Keeping interest rates high while inflation is falling means tightening policy

August 19 news, gold ten news, Chicago Federal Reserve President Goolsbee said in an interview that credit conditions in the United States have tightened and are still tightening. Although it is uncertain whether the Federal Reserve will cut interest rates next month as the market generally expects, if it does not cut interest rates, it may damage the job market. "When you set interest rates as high as they are now and keep them at that level when inflation comes down, you are actually tightening policy," he said. While there are both positive and some more worrying aspects to the economic data, he said, "If you maintain too tight monetary policy for too long, then the Fed's mandate on employment will be in question."