Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee said Friday that Federal Reserve officials are finally starting to see the broader market’s view that it is time for the U.S. central bank to act on interest rates, but he downplayed talk of a bigger rate cut at the September open.

Most crucial information

The job market is slowing down.

Today’s employment data is a continuation of what we have seen previously.

There are some stern questions that arise about this meeting and the next few months as we make sure the jobs market doesn’t become something worse.

There is sturdy consensus within the Fed that repeated interest rate cuts are necessary.

On the question of bigger interest rate cuts: Look at the scatterplots, which don’t show inflation falling as quickly or unemployment rising as much.

When asked about the 50 basis point interest rate cut in September, he replied: The most crucial thing is not what happens at the next meeting.

The current average employment rate is too low to ensure a replacement rate.

We are more tolerant of a positive surprise in the CPI, as the longer term perspective indicates a decline in inflation.

I fear that if we maintain this level of restriction, the likelihood of a recession may enhance.