Chicago Fed's Goolsbee predicts impending credit squeeze.

Federal Reserve Bank of Chicago President Austan Goolsbee warned that a credit tightening is under way and recession is a possibility. He is concerned that a lending slowdown is happening just as an argument over raising the nation's debt limit comes to a head. Goolsbee says the Fed needs to take the recent bank stresses and credit conditions into account when setting monetary policy. He said lawmakers have to raise the debt ceiling.