Chicago Federal Reserve Bank President Eric Goosbee pointed out that the current credit environment in the U.S. is experiencing tightening and is likely to tighten further. Despite market expectations of a rate cut next month, Goosbee stated that if the Fed decides against cutting rates, it could have adverse effects on the labor market. He further explained, "When you set interest rates at such high levels and keep them unchanged as inflation declines, you are actually implementing monetary policy tightening." Although economic data shows both positive factors and some concerning signs, Goosbee emphasized that long-term implementation of overly tight monetary policy will pose challenges for the Fed in achieving its employment objectives.