Fed’s Goolsbee Sees Delaying rate cuts would make sense

In response to inflation that is reportedly approaching the Fed’s 2% objective, Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee spoke to newswires on Thursday about the future pace of Fed rate decreases.

Key Quotes

Inflation is on its way down to 2%.

The labor market is close to stable, full employment

Over the next year, it feels like rates will end up a fair bit lower than they are today.

It may make sense to slow pace of interest rate cuts as Fed gets close to where rates will settle.

I’ve gotten more comfort from the fact that we’re not crashing through full employment.

Neutral is a long way below where rates are now.