Fed's Goolsbee makes case for lower interest rates

Published On Nov 26, 2024, 11:51 AM

Austan Goolsbee, the President of the Chicago Federal Reserve, stated that the current interest rates are above the neutral rate and can be cut further unless there's evidence of the economy overheating. He indicated that as the Fed continues its rate-cutting strategy, it should not rush the process and should proceed cautiously to ensure economic stability. The neutral rate is considered a level where the economy is neither stimulated nor restricted. Goolsbee's perspective suggests continued potential for lower rates in the near future, depending on economic indicators, particularly inflation and employment rates.