Goolsbee: More Data Needed Before Further Fed Rate Cuts

Federal Reserve Bank of Chicago President Austan Goolsbee indicated that recent consumer price index (CPI) data offers encouraging signs for inflation control. He stated that if this moderation is sustained, it could support additional interest rate reductions in the coming year. Goolsbee, who dissented on the central bank's recent rate cut, expressed his view that the "settling point" for interest rates is considerably lower than current levels.

In a recent interview, Goolsbee described the November CPI report, which indicated some easing of price pressures, as a "good month." However, he advised against drawing definitive conclusions from a single month's figures, especially given previous data collection issues. He reiterated his belief that further rate cuts should be approached cautiously, emphasizing the need to see more concrete progress on lowering inflation toward the Fed's 2% target.