US EditionFed’s Goolsbee calls for a hold on cuts as current rate of inflation is ‘not good enough’
Goolsbee highlighted core inflation near 3% and persistent housing costs as reasons to delay rate cuts until inflation approaches the 2% Federal Reserve target.
- On Tuesday, Austan Goolsbee, President and CEO of the Federal Reserve Bank of Chicago, urged delaying rate cuts until inflation nears 2%, citing concerns over transitory inflation assumptions.
- December's core PCE showed inflation rose to 3%, partly due to tariffs and underlying pressures, while Goolsbee warned housing inflation is stubborn and `not a safe place`.
- With markets expecting the committee to stay on hold until June or July, CME Group's FedWatch gauge shows about a 50-50 chance for June and about a 71% probability for July, Waller said policymakers should `look through` tariff impacts.
- Goolsbee has said he expects rate cuts later this year, while consumers continue to list prices as one of their most pressing concerns.
- In earlier remarks on April 10, 2025, Goolsbee said a 3% rate `is not good enough` and falls short of the Fed's 2% inflation target promise.
14 Articles
14 Articles
Fed's Goolsbee: Rate cuts appropriate if inflation falls, but too soon to bet on productivity
The U.S. Federal Reserve could resume cutting interest rates if inflation starts to fall, but it would be risky to use expected productivity growth as a reason to loosen monetary policy now, Chicago Fed president Austan Goolsbee said as he waded into what is emerging as a core debate at the U.S. central bank.
Fed’s Goolsbee Says Tariff Ruling Could Help Cool Inflation
Federal Reserve Bank of Chicago President Austan Goolsbee said the Supreme Court’s decision to strike down many of President Donald Trump’s sweeping global tariffs may cause more uncertainty for businesses but could also help cool inflation.
Fed Officials Signal Caution on Rate Cuts as Inflation Data
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Chicago Fed’s Goolsbee Urges a Hold on Rate Cuts - The MortgagePoint
More evidence is needed that inflation is on the way down before interest rate cuts would be appropriate, Chicago Federal Reserve President Austan Goolsbee said Tuesday. Recent indicators show that inflation is off its highs but still above the Fed’s 2% target, Goolsbee said. He noted that policymakers “have been burned by assuming transitory inflation” in the past and shouldn’t make the same mistake again. “I feel that front-loading too many ra…
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