Goolsbee says Fed’s wait-out approach for oil shocks has limits
Chicago Fed President Austan Goolsbee said Monday the Fed’s long-standing approach of waiting out oil supply shocks has reached its limit.
For decades, the Federal Reserve’s standard response to oil shocks has been to wait for them to fade. Chicago Fed President Austan Goolsbee said Monday that this approach has now reached its limit. He said the traditional case for waiting out supply shocks is that they tend to disappear on their own, usually before higher interest rates would be warranted.