Odd Lots · Friday, August 28, 2026
Austan Goolsbee expressed caution about relying too heavily on bond market signals, emphasizing that the Fed's mandate is focused on employment and price stability, not market performance. He also voiced support for reducing forward guidance, arguing that it can increase volatility and tie the Fed's hands, preferring a more flexible approach based on economic data.
“If you're a central banker or you're one of the Fed heads, don't get into every blip in Twitter of the bond market. I kind of think you need a little bit of time to sort out what's driving it.”
“The Federal Reserve Act says by law what we're supposed to look at. maximizing employment, stabilizing prices. Doesn't say anything about stock market, doesn't say anything about bond market. So gathering information from them, I'm totally for. Using that as a, ah, then that's what we should do, I'm less.”
“I think that adds to volatility and threatens to get us into a tying of our hands that I don't think is healthy. So I have embraced this. Let's engage in last forward guidance.”