Fed's Goolsbee calls for a hold on cuts as current rate of inflation is 'not good enough'
CNBC • • general
Key Points:
- Chicago Federal Reserve President Austan Goolsbee stated that interest rate cuts are premature until there is clear evidence that inflation is declining toward the Fed's 2% target.
- He cautioned against front-loading rate cuts, emphasizing that inflation remains a pressing concern for many and that policymakers should avoid repeating past mistakes of assuming inflation was transitory.
- December's core inflation rose to 3%, driven partly by tariffs and underlying pressures in sectors like housing, which Goolsbee highlighted as not tariff-related and requiring vigilance.
- Market expectations suggest the Federal Open Market Committee will hold rates steady until at least June or July, with a roughly 50-70% probability of cuts by mid-year.
- Fed Governor Christopher Waller took
