Fed Official Warns Against Prolonged Tightening Policies

Federal Reserve Bank of Chicago President Austan Goolsbee emphasized that the U.S. economy doesn't exhibit signs of overheating. He urged the central bank to avoid keeping restrictive monetary policies longer than necessary. Goolsbee's comments were made during an interview with National Public Radio.

Federal Reserve Bank of Chicago President Austan Goolsbee on Friday emphasized that the U.S. economy is not currently showing signs of overheating. As a result, he advised central bank officials to be cautious about maintaining restrictive policies for longer than necessary.

"You don't want to tighten any longer than you have to," Goolsbee stated in an interview with National Public Radio. "And the reason you'd want to tighten is if you're afraid the economy is overheating, and this is not what an overheating economy looks like to me," he added.

(Reporting By Dan Burns)

(With inputs from agencies.)