U.S. International Transactions, 2nd Quarter 2025

Fed's Goolsbee: Job market statistics show a lot of stability Fed's Goolsbee: We Have A Low-Hiring, Low Lay-Off Market - We Did Not Move Inflation Target - Have To Get Inflation To 2% Period - Anyone Saying We're Raising The Inflation Target, That's Dangerous Talk - I Think We Are Mildly Restrictive *GOOLSBEE: NEUTRAL IS 100-125 BASIS POINTS BELOW CURRENT RATE *GOOLSBEE: RIGHT NOW, I'M NOT THINKING ABOUT 50 BASIS-POINT CUTS Federal Reserve's Goolsbee Says Rate Could Stabilize Near 3% Once Inflation Reaches 2%, He Is Fine With That Fed's Goolsbee: Labor Market Continues To Cool At A Mild, Modest Pace - Supply Side Of Labor Is Moving All Around With Immigration

Good morning. I would like to thank the Kentucky Bankers Association for the opportunity to join you again for your annual convention, this time with an important difference. Earlier this year, the President nominated, and the Senate confirmed, me as the Fed's Vice Chair for Supervision. It's the first time someone with community banking experience has served in this role, and I am working to make sure that the Federal Reserve is addressing the issues I have discussed with you and other community bankers over the past nearly seven years that I've been a member of the Board of Governors. It is really a pleasure to be with you again, and especially in Asheville, North Carolina, after the terrible flooding this area experienced last year. Since the Federal Open Market Committee (FOMC) met for our September meeting last week, I thought I would share my views on the U.S. economy and monetary policy, including on my policy vote. Update on the Most Recent FOMC Meeting At last week's FOMC meeting, the Committee voted to lower the target range for the federal funds rate by 1/4 percentage point, bringing it to 4 to 4-1/4 percent, and to continue to reduce the Federal Reserve's securities holdings. In my view, the Committee should have begun lowering the policy rate at the July meeting, so, of course, I supported reducing the policy rate at this meeting. For several months, I have been pointing out signs of potential labor market fragility. Since the June FOMC meeting and in public remarks following that meeting, I have argued that increasing signs of weakening labor market conditions provide a basis for beginning to move the policy rate closer to neutral to proactively support the employment side of our mandate. Recent data have revealed a materially more fragile labor market along with inflation that, excluding tariffs, has continued to hover not far above our target. Given this shift in lab FED'S BOWMAN SAYS TIME TO ACT DECISIVELY ON RATE CUTS Fed's Bowman: I'm worried the Fed is behind the curve on labor market weakness, policy may need to adjust faster if risks materialize FED'S BOWMAN: LABOR MARKET COULD DETERIORATE FAST IN COMING MONTHS. ... Fed President Bowman: Tariffs will have less impact on inflation, inflation is close to target.