Fed’s Goolsbee Says Rate Cuts Possible if Inflation Moves Toward 2% Target
Chicago Federal Reserve President Austan Goolsbee said the central bank could consider cutting interest rates if inflation shows a clear path toward the 2 percent target.
He noted that current monetary policy remains restrictive, but a continued slowdown in price pressures would give policymakers room to act in upcoming meetings.
The remarks come as markets await fresh signals on inflation and labor conditions, with expectations that the Fed will maintain a cautious approach before making further moves.
Analysts view Goolsbee’s comments as reflecting differing opinions within the policy committee between those favoring a pause and those supporting gradual easing.
The official also stressed that preserving the Fed’s independence is essential for long-term economic stability and warned that political pressure could undermine efforts to control inflation.
He noted that current monetary policy remains restrictive, but a continued slowdown in price pressures would give policymakers room to act in upcoming meetings.
The remarks come as markets await fresh signals on inflation and labor conditions, with expectations that the Fed will maintain a cautious approach before making further moves.
Analysts view Goolsbee’s comments as reflecting differing opinions within the policy committee between those favoring a pause and those supporting gradual easing.
The official also stressed that preserving the Fed’s independence is essential for long-term economic stability and warned that political pressure could undermine efforts to control inflation.
