According to Goolsbee from the Federal Reserve, he expressed feeling perplexed by the market's response during the previous week.

 Goolsbee finds himself bewildered by the market's reaction to the Federal Reserve's decision to raise interest rates.

On the 20th of December, 2023,

On Monday, Federal Reserve Governor Jason Goolsbee conveyed his confusion regarding the market's reaction to the central bank's recent increase of interest rates by 50 basis points in Washington, D.C.

During an interview with CNBC, Goolsbee expressed his confusion regarding the market's reaction. He mentioned that the market seemed to anticipate a 50-basis-point increase, which is exactly what it received. Therefore, he questioned what exactly the market was hoping for.

Monday witnessed a significant decline in the S&P 500, marking its most unfavorable performance since June 2022. The Nasdaq Composite also experienced a notable drop of 2.76%, while the Dow Jones Industrial Average saw a decrease of 1.56%.

According to Goolsbee, the market's response to the Fed's rate hike is an overreaction. He pointed out that the Fed is currently in the midst of scaling back its monetary stimulus, and it will take a while before the rate hikes have their complete effect.

According to Goolsbee, there appears to be a slight disconnect between the market and reality. The Federal Reserve is still in the early phases of implementing tighter policies, and it will take some time before we reach a neutral stance. Therefore, Goolsbee believes that the market is overreacting to what is actually a relatively minor adjustment in policy.

According to Goolsbee, there is a strong belief that the Federal Reserve is dedicated to managing and reducing inflation. He highlighted the fact that the Fed has a two-fold mission of ensuring price stability and promoting maximum employment, and is actively implementing measures to tackle both issues.

According to Goolsbee, the Federal Reserve has a strong emphasis on combating inflation. They are implementing measures such as increasing interest rates and reducing their balance sheet in order to tackle inflation head-on. Their commitment to controlling inflation is unwavering, and they are determined to take all necessary actions to achieve this goal.

The Federal Reserve decided to raise interest rates by 50 basis points, the largest increase since 2000. The central bank is expected to further raise interest rates in 2023. Some analysts predict that the next time the Federal Reserve raises interest rates, it may raise interest rates by as much as 75 basis points in July.