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Fed's Goolsbee calls for a hold on cuts as current rate of inflation is 'not good enough'
Chicago Federal Reserve President Austan Goolsbee said Tuesday that interest rate cuts aren’t appropriate until there’s more evidence that inflation is on its way down. With recent indicators showing that inflation well off its highs but still above the Fed’s 2% target, Goolsbee noted that policymakers “have been burned by assuming transitory inflation” in the past and shouldn’t make the same mistake again. “I feel that front-loading too many rate cuts is not prudent in that circumstance,” he said in remarks before the National Association for Business Economics at its annual gathering in Washington, ... (full story)
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First, it’s great to be back at the NABE meetings and it’s great to see you all again. Thanks to Ellen Zentner for moderating. With the storms and the travel problems, Ellen never wants to get involved with me. The last time Ellen moderated a NABE event where I was involved was on Zoom in 2020 during Covid, before I was ever at the Fed. Our panel was at lunch time. My driver’s license was expiring so I had to go to the DMV, and I got there the minute it opened. But I ended up stuck in a Covid-procedures line for three and a half hours where you weren’t allowed to use a phone or leave the line. I missed the first half of the panel and ended up having to do my presentation from my car in the DMV parking lot. Sorry, Ellen. This time it wasn’t my fault. CHICAGO FED'S GOOLSBEE: 'NOT OBVIOUS' FED'S RATE STANCE IS STILL RESTRICTIVE FED'S GOOLSBEE: 3% INFLATION 'NOT GOOD ENOUGH' FED'S GOOLSBEE: OPTIMISTIC THERE CAN BE MORE RATE CUTS THIS YEAR, BUT NOT UNTIL INFLATION IS HEADING BACK TO TARGET GOOLSBEE: CAN'T BANK ON COMING PRODUCTIVITY TO LOWER INFLATION OR USE THAT AS A RATIONALE FOR RATE CUTS GOOLSBEE: INFLATION PROGRESS HAS STOPPED, NOT OBVIOUS THAT… GOOLSBEE: CORE SERVICES INFLATION EX HOUSING IS STUBBORNLY HIGH, NEED TO BE VIGILANT GOOLSBEE: LOWERING RATES IN ANTICIPATION OF PRODUCTIVITY GAINS COULD LEAD TO OVERHEATING GOOLSBEE: CONSUMER SPENDING, NOT AI INVESTMENT, HAS BEEN MAIN DRIVER OF ECONOMIC GROWTH GOOLSBEE: LOW…
Federal Reserve governor Lisa Cook suggested Tuesday that artificial intelligence could push the central bank to have to make hard choices between keeping interest rates elevated to fend off inflationary pressures and lowering rates to address lower employment. “If AI continues to raise productivity, economic growth could remain strong, even as churn in the ...
From fpmarkets.com | Feb 23, 2026
When the RBA last met at the start of this month, the Board unanimously voted to increase the cash rate by 25 bps to 3.85% from 3.60%, though it did so cautiously. For me, the meeting was a blend of hawkish intent and measured restraint, suggesting that while the central bank is serious about controlling inflationary pressures and that it is its primary ...
