Austan Goolsbee, Interview: Fox News

Credit Conditions

“We know that credit conditions like the ones we’re seeing now, in the past have been correlated with recessions, credit crunches, kind of have done the tightening work of monetary policy. So in our phrase, as you know, data dependents. We got to be data dependent. We got to watch a lot of indicators, not just the unemployment.”

“And so that’s what we all got to keep an eye on that part of credit conditions because as I view it, that’s doing the work of monetary policy. If you feel like the economy’s still very hot, the unemployment rate is 3.4%, the whatever tightening that you’re going to need to do, it’s got to be taking into account of what the banking system’s impact.”

Fed Funds

A hike in June? “I think way too premature to say that.”