Fed's Goolsbee Says Current Unemployment Rate Is "Pretty Close" To Full Employment; Business Contacts Say Labor Market Is Getting Tighter, Alternate Measures Tell The Same Story; Fed Remains Very Credible, Everyone Takes The Job Extremely Seriously; Components Of Inflation Will Matter To Fed's Analysis, With Services Inflation Not Seen As Tied To Oil Price Shock But A Product Of Strong Demand; Should Be Open To Making The Sep More Informative

This filing links to a speech by Fed President Goolsbee, discussing the current state of the labor market, inflation components, and the Fed's credibility. It suggests a hawkish lean due to a tight labor market and strong demand driving services inflation, which could influence future monetary policy decisions.

The filing is a link to a speech by Chicago Fed President Goolsbee, where he states the unemployment rate is 'pretty close' to full employment and business contacts indicate a tightening labor market. This suggests that the Fed may continue to be concerned about inflation, particularly services inflation driven by strong demand, which is not tied to oil price shocks. This hawkish sentiment could lead to higher interest rates or a longer period of restrictive monetary policy, impacting the broader market. Short-term, this could create volatility as investors digest the implications for future rate hikes. Long-term, sustained tight monetary policy could slow economic growth. Traders should consider the potential for continued pressure on growth stocks and a strengthening dollar.