Fed's Goolsbee responds to rate cut: Everything is under discussion

Odaily Odaily News: Fed's Goolsbee said that the labor market and some leading economic indicators are flashing warning signs, adding that people are worried that the unemployment rate will continue to rise. "Historically, if the unemployment rate starts to rise and if temporary employment is negative, this is a leading indicator," Goolsbee said. He pointed out that rising credit card delinquencies and rising small business defaults are also a cause for concern. He said that when problems begin to arise in the job market, they tend not to happen slowly. However, he declined to say whether he was in favor of cutting interest rates at the Fed's next meeting in September, but he reiterated that there was no need to tighten monetary policy when the economy was not overheating. When asked about the possible extent of the rate cut, Goolsbee said: "Everything is under discussion." (Jinshi)