Federal Reserve's Goolsbee: Warning signals in the economy and labor market

ChainCatcher news, Federal Reserve's Goolsbee stated that the labor market and some economic leading indicators are flashing warning signals, adding that there are concerns that the unemployment rate will continue to rise.

Goolsbee said, "Historically, if the unemployment rate starts to rise, and if temporary employment is negative, that is a leading indicator." He pointed out that the rising credit card delinquency rates and the increasing default rates among small businesses are also concerning issues. He noted that when problems begin to emerge in the job market, they often do not happen slowly. However, he declined to disclose whether he supports a rate cut at the Federal Reserve's next meeting in September, but he reiterated that there is no need to tighten monetary policy as long as the economy is not overheating. When asked about the possible magnitude of a rate cut, Goolsbee stated, "Everything is on the table." (Jin Shi)