Federal Reserve policymaker Austan Goolsbee estimated on Monday that the bank's policy tightening is yet to impact the United States economy.
In an interview with Yahoo Finance, the Chicago Fed president said he believed it was appropriate to vote for the 25 basis point hike at the last week's FOMC meeting. However, he added that it is too early to suggest the Fed's next policy move due to significant market uncertainties.
Commenting on the economy, Goolsbee argued that he is "getting vibes in the market that the credit crunch is beginning" and that today's loan officer survey for the first quarter of 2023 will provide additional details on credit conditions. "We should be extra-attuned to issues in the bond market related to the debt limit," he concluded.
