Fed Golsby reduces recession risk amid global market turmoil

(MENAFN) Despite recent weaker-than-expected employment data from the U.S., Chicago Federal Reserve bank President Austan Goolsbee asserted on Monday that the U.S. Economy does not currently exhibit signs of recession. Speaking in an interview with CNBC, Goolsbee emphasized that while the employment numbers fell short of expectations, it is essential for Federal Reserve officials to adapt to market fluctuations to prevent excessive tightening of interest rates. His comments come against the backdrop of a global stock market sell-off, which intensified on Monday following the release of disappointing U.S. employment figures and the Fed's recent decision to maintain interest rates.

The global market turmoil has been compounded by the Federal Reserve's stance last week, which saw interest rates left unchanged despite growing economic concerns. However, there are indications that the Fed may consider reducing interest rates in its upcoming September meeting, as the economic landscape continues to evolve. In light of these developments, U.S. economist Jeremy Siegel has called for a more aggressive approach, recommending an emergency interest rate cut of 75 basis points to address the current economic pressures and stabilize market conditions. 

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