According to Jinshi, Chicago Fed President Goolsbee said the latest U.S. non-farm payrolls report was "excellent" and said more similar data would boost his confidence that the economy is in a state of full employment and low inflation.

Goolsbee noted that the port strike will not continue, which is also good news for the economy. He believes that if he continues to get similar reports, he will be more confident that the economy has reached full employment.

Still, Goolsbee noted that a wide range of indicators show a cooling job market and there are even signs that inflation could fall below the Fed’s 2% target.

He also said that with the Fed’s policy rate well above what most policymakers see as an ultimate “steady state point,” “substantial” rate cuts would be appropriate over the next 12 to 18 months, as most policymakers expect.