U.S. Federal Reserve: Prolonged Tight Monetary Policy Will Harm Jobs

Austin Goolsbee, head of the Federal Reserve Bank of Chicago, stated on Sunday that "it is becoming increasingly difficult for individuals and businesses to obtain loans in the United States, and failing to lower interest rates could harm the labor market." In an interview with CBS, he noted that a broad expectation exists for the Fed to cut interest rates next month. Goolsbee explained, "When you raise interest rates, as we did, and keep them at that level while inflation decreases, you are effectively tightening (monetary policy)." While economic data shows a mix of positive indicators and others that raise concerns, Goolsbee remarked, "If you maintain tight monetary policies for too long, you will encounter problems with employment."