Federal Reserve's Goolsbee: Maintaining high interest rates while inflation is falling is equivalent to tightening policy

In an interview, Charles Evans, the President of the Federal Reserve Bank of Chicago, stated that credit conditions in the United States are tightening and continue to do so. Although it is still uncertain whether the Federal Reserve will cut interest rates next month as widely expected by the market, failure to do so could harm the job market. He said: "When you set interest rates as high as they are now and maintain them at that level when inflation is falling, this is essentially a tightening policy." While there are both positive aspects and more worrying aspects in economic data, he noted that "if monetary policy remains too tight for too long, then there may be problems with the Fed's mission on employment."