Fed's Goolsbee: Strong Demand May Be Driving Up US Inflation

Fed member Goolsbee's hawkish message that strong demand could increase inflation may weaken rate cut expectations and put pressure on growth stocks. GOOGL has risen 3.4% in the last 24 hours and is approaching overbought territory with an RSI of 68, increasing the risk of a short-term correction. The MACD is positive and the price is above the SMA20/50, indicating the main trend is still upward. The news alone may not trigger a sharp sell-off; the impact could be limited and volatile. Therefore, I foresee a slightly bearish but low-confidence outlook for the next 1-3 days.

Goolsbee's emphasis on strong demand and inflation is seen as a signal that the Fed may delay interest rate cuts, which is slightly positive for the DXY. The RSI is at 60, not near overbought territory, and the MACD is above the signal line, indicating weak but positive momentum. The price is trading just above the SMA20 and SMA50, providing short-term support. However, the 24-hour change is negative and the news impact may be limited; therefore, although the direction is upward, confidence is low. In the 1-3 day horizon, the 100.50-100.80 resistance zone may be tested, and if it falls below 100.20, the outlook turns neutral.

Goolsbee's statement that inflation may be driven by strong demand can be read as a signal that the Fed might delay interest rate cuts or adopt a more hawkish stance. This increases the risk of a short-term correction, especially since RSI14 is at 71, in overbought territory, and the price is significantly above the SMA20 and SMA50. However, the MACD being above its signal line and in positive territory indicates that the current upward momentum has not yet completely deteriorated. Therefore, the impact may be limited and downward; rather than a sharp sell-off, profit-taking could be seen. Nevertheless, when the news is interpreted hawkishly and overbought conditions are considered together, the probability of downward pressure in the short term is somewhat higher.

Goolsbee's emphasis on strong demand and inflation could be read as a hawkish signal that the Fed may delay rate cuts. NDX has risen 4.45% in the last 24 hours and the RSI is at 81, in overbought territory; this increases the risk of a short-term correction. MACD is positive and the price is above the SMA20/50, the trend is still strong, but the news could weaken momentum. Nevertheless, a single Fed member's statement has limited impact; unless the market prices in a generally hawkish tone, the downside may remain limited. Therefore, I expect a slight downward trend for 1-3 days.