FED'S GOOLSBEE SAYS ALL OPTIONS REMAIN OPEN AND THE FED MUST REDUCE INFLATION TO TARGET, THAT IT WOULD BE A MAJOR CONCERN IF INFLATION EMBEDS INTO EXPECTATIONS, AND THAT THE FED WILL HAVE TO ACCEPT IT IF INFLATION REMAINS PERSISTENT

Chicago Fed President Austan Goolsbee stated that all policy options remain on the table and that the Fed must bring inflation back to its target, warning that a de-anchoring of inflation expectations would be a major concern. He also indicated the central bank would have to accept a slower path if inflation proves persistent. The core transmission channel is inflation repricing: a signal that tolerance for above-target inflation may rise pushes up breakeven inflation and the term premium, while steepening the expected path of policy rates relative to earlier easing bets. Rate-sensitive assets such as long-duration Treasuries, growth equities, and rate-sensitive credit are most exposed, since higher discount rates compress their valuations, while the dollar may firm on rate-differential expectations. Traders should watch the next Personal Consumption Expenditures price release and University of Michigan long-run inflation expectations, as any upside surprise in the latter would test the Fed's credibility on anchoring.

HIGH-impact news is typically a market-moving event with multi-pip or multi-percent intraday reactions. Examples include central bank rate decisions, major CPI/NFP releases, geopolitical shocks, mega-cap earnings beats/misses, and regulatory announcements. Traders typically position-reduce or hedge ahead of scheduled HIGH-impact events, and follow the wire in real time to react to unscheduled ones (war headlines, central-bank emergency statements, surprise corporate actions). The Trading News Terminal squawk box reads every HIGH-impact headline aloud the moment it hits the wire — so active traders don't have to stare at the feed.

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