Fed President Goolsbee Weighs In on Weak Employment Data and Interest Rates

Chicago Federal Reserve Bank President Austan Goolsbee commented on weaker-than-expected U.S. employment data, suggesting it does not indicate an impending recession. He stressed the importance of Fed officials being aware of environmental changes to avoid overly restrictive interest rates, amid a global stock market selloff.

Chicago Federal Reserve Bank President Austan Goolsbee on Monday addressed the recent weaker-than-expected U.S. employment data, indicating that it does not signal an impending recession. He emphasized the need for Fed officials to stay aware of changing conditions to avoid being too restrictive with interest rates.

"You only want to be that restrictive if you think there's fear of overheating," Goolsbee stated during an interview on CNBC. "These data, to me, do not look like overheating."

Goolsbee's comments surfaced amid a global stock market selloff, which gained momentum on Monday following Friday's disappointing employment report and the Fed's decision to keep interest rates unchanged last week. However, Fed officials hinted at possible rate cuts in their upcoming September meeting.

(With inputs from agencies.)