Fed's Goolsbee: My unease is about frontloading rate cuts too heavily | Metals Mine

  • Fed's Goolsbee: My unease is about frontloading rate cuts too heavily

Added at 7:03am

Added at 7:03am

Added at 7:04am

  • Statement from Chicago Fed President Austan Goolsbee on FOMC Dissent

    From chicagofed.org

    At the December 10 Federal Open Market Committee meeting, I dissented on the decision to cut the federal funds rate. While I voted to lower rates at the September and October meetings, I believe we should have waited to get more data, especially about inflation, before lowering rates further. Waiting to take this matter up in the new year would not have entailed much additional risk and would have come with the added benefit of updated economic data which have been absent lately. Given that inflation has been above our target for four and a half years, further progress on it has been stalled for several months, and ... (full story)

Added at 7:07am

  • Fed's Goolsbee explains vote against December rate cut, says patience 'feels like the wiser choice'

    From uk.finance.yahoo.com

    Chicago Federal Reserve president Austan Goolsbee said Friday that his vote against the Federal Reserve's decision to lower interest rates this week resulted from his preference to wait for more data on inflation before another cut. “Waiting to take this matter up in the new year would not have entailed much additional risk and would have come with the added benefit of updated economic data which have been absent lately,” Goolsbee said in a statement. Goolsbee added he remains “optimistic” rates can come down a “significant amount” over the next year. Goolsbee has repeatedly said he’s uneasy about too ... (full story)

Comment Options
Trader#AF50
Dec 12, 2025 7:11am
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What's that guy's problem? Inflation is because essentially 2 companies produce all petfood, because 80% of the beef market is 4 companies. It's zero to do with interest rates. In fact, interest rates are a cost like labor, taxes, etc so if anything high rates cause more inflation. And high rates are a stimmy check to bond holders, goosing demand.

Trump is right for the only time in his entire life: interest rates need to be zero.
Reply
Trader#47F9
Dec 12, 2025 8:15am
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Quoting Trader#AF50
What's that guy's problem? Inflation is because essentially 2 companies produce all petfood, because 80% of the beef market is 4 companies. It's zero to do with interest rates. In fact, interest rates are a cost like labor, taxes, etc so if anything high rates cause more inflation. And high rates are a stimmy check to bond holders, goosing demand. Trump is right for the only time in his entire life: interest rates need to be zero.
No! Higher interest rates encourage saving and discourage borrowing and spending, which slows inflation. Trump is focused only on his own ass and the stock market going higher so he can look good and feel good about himself. Higher rates attract foreign investors seeking higher returns, increasing demand for the dollar. Greater demand strengthens the currency in both relative and absolute terms. A stronger currency increases purchasing power, reduces wage pressures, and makes imports cheaper, which lowers costs for businesses and keeps prices from rising. People don't demand higher salaries as the purchasing power is returned to the currency. What you and Trump are suggesting will totally destroy the US economy and currently is. Take CHF for example and you'll understand what I mean. Strong currency, low inflation. Also, imposing tariffs in the moment the Fed is trying to get inflation under control shows a complete lack of working brain cells.

Don't you worry, you will get exactly what you're asking for with the current Fed and the president of the US. You'll get your lower rates! Tell me... did those cuts from the Fed help so far? Or make the situation even worse?

As I'm writing this, yields on the long end are surging higher. But you think that Trump is right and that the Fed should continue cutting rates?
Reply
Trader#4C7A
Dec 14, 2025 2:42pm
Permalink
Quoting Trader#AF50
What's that guy's problem? Inflation is because essentially 2 companies produce all petfood, because 80% of the beef market is 4 companies. It's zero to do with interest rates. In fact, interest rates are a cost like labor, taxes, etc so if anything high rates cause more inflation. And high rates are a stimmy check to bond holders, goosing demand. Trump is right for the only time in his entire life: interest rates need to be zero.
Do you also still believe in Santa Claus
Reply
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