Federal Reserve Bank of Chicago President Austan Goolsbee said Thursday that recent inflation data is "good" and could pave the way for more interest rate cuts next year if the trend continues.
"My view is that the settling point of rates is a fair bit below where it is today, and that by the end of next year we can, as long as we are hitting our marks on getting inflation back on path to 2%, I think that it's realistic that rates can come down a fair amount," Goolsbee stated in a Fox Business interview.
Goolsbee was one of two officials who voted against the Fed's most recent rate cut. He expressed discomfort about front-loading rate cuts and indicated he needs to see more sustained progress in cooling inflation before supporting additional reductions.
The Chicago Fed president noted that most measures of the job market have shown steady cooling. He also mentioned that rates can decrease significantly as long as inflation continues its path toward the Fed's 2% target.
When asked about the upcoming change in Fed leadership, Goolsbee said he doesn't expect any management issues with the transition to a new Federal Reserve chair.
Source: Investing.com
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