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.

The Federal Reserve reduced its target interest rate by a quarter percentage point on December 10, balancing job market risks with persistent inflation. Goolsbee, along with another regional Fed leader, voted against this move, preferring to wait for more data. He believes waiting until the new year would have presented minimal additional risk and offered the benefit of updated economic information.