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Chicago Federal Reserve president Austan Goolsbee sought to calm the fears<\/a> of a panicked<\/a> market on Monday.\u00a0<\/p>\n In an interview<\/a> on CNBC<\/em>, Goolsbee said the Fed was prepared to address any stumbles in the economy. Goolsbee reiterated the Fed\u2019s commitment to its mandate to keep prices stable, maintain maximum employment, and \u201cmaintain financial stability.\u201d The Fed wouldn\u2019t waver from its objectives. \u201cIf there is deterioration on any of those parts we\u2019re going to fix it,\u201d Goolsbee said.\u00a0<\/p>\n The comments come as investors across the world sold off stocks<\/a> and assets, tanking<\/a> global stock indices. Goolsbee though was clear that the Fed\u2019s decisions wouldn\u2019t be based solely on market moves.\u00a0<\/p>\n \u201cIt\u2019s the market\u2019s job to react and the Fed\u2019s job to act<\/em>.\u201d Goolsbee said. \u201cAnd one of those moves with a lot more volatility than the other.\u201d<\/p>\n His comments on volatility were seemingly in reference to the market, which can have sharp, unexpected movements, like those seen on Monday<\/a>, when investors become skittish about what they perceive to be a sagging economy<\/a>. On Monday morning the Dow<\/a> Jones fell 952 points<\/a>, while the S&P 500 and the Nasdaq<\/a> Composite dropped by more than 3%. Japan\u2019s Nikkei index was hit especially hard<\/a>, at one point falling as much as 13% on the day. \u201cIt seems like there\u2019s a lot going on in the world,\u201d Goolsbee said.\u00a0<\/p>\n Of great concern to some investors over the past several days is last week\u2019s jobs data, which showed a rise in the unemployment rate<\/a> to 4.3% in July from 4.1% the prior month. Climbing unemployment rates can be a harbinger<\/a> of a recession, so economists have been trying to analyze whether the July unemployment data was a one-time spike or the start of a trend. Goolsbee did not believe they presaged a recession. \u201cJobs numbers came in weaker than expected, but not looking yet like recession,\u201d he said.\u00a0<\/p>\n However, because of those numbers, the Fed is eyeing unemployment more closely<\/a>, according to Goolsbee. For a long time, the Fed had the luxury of focusing much of its attention on addressing inflation because the job market had remained historically strong. But now with the softening labor market, and unemployment rising every month since March, the Fed is having to more actively balance the two parts<\/a> of its mandate. \u201cNow you see some weakness in the job market, we have to pay attention to that,\u201d Goolsbee said.\u00a0<\/p>\n Goolsbee framed the unexpected unemployment data and sell-off on Monday as just some of the many economic indicators the Fed would have to use in its decision-making over the coming months. \u201cThat\u2019s the Chicago motto: There\u2019s no bad weather, only bad clothing,\u201d he said. \u201cThe conditions come in and we\u2019re going to respond as appropriate.\u201d\u00a0<\/p>\n Economists and investors largely expect the Fed to cut rates<\/a> at its next meeting in September. At the central bank\u2019s most recent meeting<\/a> last week, Federal Reserve chair Jerome Powell hinted<\/a> that cuts \u201cwere on the table\u201d in September. Goolsbee remained circumspect, citing the need to respond in the moment. \u201cIt\u2019s a huge table, everything is always on the table,\u201d he said.\u00a0<\/p>\n<\/div>\n\nRecommended Newsletter: <\/strong>CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about\u2013and from inside\u2013the C-suite. Subscribe Now<\/a>.<\/div>\n