Fed’s Goolsbee: The July non-farm payrolls report is pretty much what we expect

• Jobs market cooling a bit but still extremely strong
• Goods inflation has been tough to bring down
• Highlights improvements in US productivity as disinflationary
• Fed has to be patient, monetary policy has lags
• Question should be: How long are we going to stay at these levels, not about when the next hike will be
• Holding rates at these levels is increasing restriction
• We have been getting promising numbers on inflation

Between Goolsbee and Bostic there isn’t much angst about the higher wage number today but that’s not a big surprise given their dovish leanings.