Chicago Fed President Says Delayed Jobs Report ‘Definitely Complicates’ Rate Cut Decision
A delay in the release of the May jobs report is adding uncertainty to the Federal Reserve’s timeline for potential interest rate cuts, according to Chicago Federal Reserve Bank President Austan Goolsbee. The Bureau of Labor Statistics unexpectedly postponed the report’s publication, originally scheduled for June 7th, citing a technical issue.Goolsbee emphasized the importance of data-driven decisions and acknowledged the complication the delay introduces.
The timing of the first rate cut is a critical question for the U.S. economy, impacting borrowing costs for businesses and consumers alike. A rate cut could stimulate economic activity, while maintaining current rates aims to control inflation. The Fed’s Federal Open Market Committee (FOMC) relies heavily on economic indicators, including the jobs report, to assess the health of the economy and guide monetary policy. Goolsbee affirmed the committee’s commitment to basing decisions solely on economic data, despite external pressures.
“Economists are close to unanimous that a central Bank must be independent of political interference when setting the interest rate,” Goolsbee stated, responding to recent criticism from former President Donald Trump, who has publicly called for the Fed to lower rates and even suggested firing Fed officials. “If there isn’t independence of the Central Bank, inflation comes roaring back, growth is worse, unemployment is worse.”
Goolsbee underscored the seriousness with which the FOMC approaches its responsibilities, noting that minutes and transcripts of meetings demonstrate a focus on the economic outlook and data analysis. He acknowledged that outside opinions, including those from the President, are considered but ultimately, “the decisions have got to be made on the data.” He added, “It pains me if we’re having public discussions about whether the Fed should be independent. It should be independent.”
