Fed's Goulsby: Rising unemployment is a 'warning sign'

Chicago Federal Reserve Bank President Austen Goolsby said on Friday that although the US inflation rate in July was positive, the unemployment rate was rising, and this should be viewed as a “warning sign.”

Governor Goulsby expressed concern about the increase in debt default by small and medium enterprises and several indicators that are emitting a “yellow light” that has now reached alert levels. “The impact of past interest rate hikes may not have been fully evident,” the governor added.

The policymaker further emphasized that if the Fed relaxes monetary policy, some of the current rather “strict” credit restrictions will be relaxed.