In a recent interview, Fed’s Goolsbee indicated that the central bank would gradually lower interest rates to accommodate a slowing economy and declining inflation. He emphasized that the rate cut process would likely span over a year or more.
Goolsbee dismissed any political motivations behind the Fed’s decision to cut rates, stating that the primary reason is the economy’s return to normalcy. He noted that inflation is approaching the Fed’s target and the job market remains stable and sustainable.
Goolsbee stressed the importance of a gradual rate cut process to avoid economic disruptions. He explained that the central bank could not afford to wait until the job market weakens before taking action.
Goolsbee also expressed concerns about a potential prolonged strike by dockworkers, which could further impact the economy and influence the Fed’s monetary policy decisions.
