Goolsbee: Lower Interest Rates Later, Ensure Inflation Returns to 2%
Federal Reserve Bank of Chicago President Austan Goolsbee said he remains optimistic that an interest rate cut could occur this year. However, he believes the Fed needs to ensure inflation is truly falling and returning to its 2% target before taking further action.
In a statement ahead of the National Association for Business Economics (NABE) event in Washington, D.C. on Tuesday, Goolsbee assessed that the process of reducing inflation is indeed underway, but the momentum has stalled.
He emphasized that the Fed still needs more convincing progress in inflation—meaning data must show inflation returning to 2%, not just a temporary decline.
The bottom line: the opportunity for a rate cut is still open, but the Fed is not in a rush. Its focus remains the same: inflation must be addressed first.
Source: Newsmaker.id
