Fed's Goolsbee: There's still some potential for a soft landing

“Fear with rising unemployment is that once joblessness starts to rise it ‘goes way up’,” said Federal Reserve Bank of Chicago President Austan Goolsbee while participating in a conference hosted by the Federal Reserve Bank of Atlanta, together with Atlanta Fed President Raphael Bostic.

Also read: Fed's Bostic: Pressure on Fed will be “enormous” if unemployment starts to rise, inflation remains sticky

Key comments

Wages are not a leading indicator of inflation.

'A chance' can get rid of inflation without a recession.

Market reaction

Even if Fed’s Goolsbee fails to amplify hawkish comments from Atlanta Fed President Bostic, the tone of the statements appears positive for the US Dollar. However, the US Dollar Index (DXY) remains unimpressive as bulls take a breather around 102.70 after reversing the week-start gains.

Also read: Forex Today: Higher US yields, risk aversion lead to a stronger US Dollar