Chicago Federal Reserve Bank president Austan Goolsbee said that today's U.S. employment situation release is a "superb report". However, he added that the Fed does not want to react too much to one month’s data. "If we get more jobs reports like this, we will be more confident we are settling at full employment", Goolsbee noted.
In addition, the boss of the Chicago Federal Reserve Bank admitted that if the Fed could keep unemployment at 4% to 4.5% with inflation around 2%, that's exactly what it wants.
Goolsbee also unveiled that the Fed policymakers are still a ways off from having to sort out where the neutral rate is. He added that they have time and runway to figure out where the settling point on the Fed policy rate is. "We need to try to maintain conditions like they are now," he stressed, noting that it's hard to say where the neutral rate is but it's definitely higher than zero. According to him, the bulk of the Fed's policymakers see it in the 2.5-3.5% range.