Federal Reserve's Goolsbee: May temporarily keep interest rates unchanged

ChainCatcher news, today the U.S. January seasonally adjusted non-farm payrolls recorded 143,000, significantly lower than the market expectation of 170,000, marking a new low since October last year. Federal Reserve's Goolsbee commented on the macro data, stating, "This is a solid non-farm payroll report. It looks like we are about to achieve full employment. After recent observations, I am optimistic that tariffs will ultimately not be a significant barrier to trade. I am satisfied with the economic development path. Tariffs may become a 'wrench' in the supply chain. Wage growth is roughly in line with the 2% inflation level. Long-term market-oriented inflation expectations show that the market believes the Federal Reserve will keep inflation under control at 2%."

"The current Federal Reserve is maintaining interest rates, but in the next 12 to 18 months, rates will be slightly lower than current levels. The pace of rate cuts will slow under greater uncertainty. On the path to achieving the 2% inflation target, we may temporarily keep rates unchanged. The neutral balance point for rates has declined. Stability in rates needs to be achieved on a 'prudent' timetable. I do not believe the Federal Reserve will play a role in any sovereign wealth fund." (Jin Ten)