Chicago Federal Reserve President Austan Goolsbee stated on Tuesday that the progress in bring inflation down continues, while economic growth remains strong. According to him, the labor market remains vibrant, and he expressed more concern about potential external shocks rather than the economy overheating. He added that there is still a way to go before inflation reaches the Fed's 2% target.

Speaking at the Detroit Economic Club, Goolsbee explained that the US could witness the fastest non-war-related one-year decline in inflation in a century this year, while simultaneously keeping the unemployment rate below 4% without it rising.

Market reaction

The US Dollar is holding onto significant daily losses following the release of the US Consumer Price Index report, which, according to Goolsbee, appeared to be "pretty good." The US Dollar Index is down 1.40%, trading at 104.15, which is the lowest level seen since early September.