Investing.com -- Chicago Federal Reserve President, Austan Goolsbee, has indicated that rate cuts are still a possibility within a 10 to 16-month horizon. His comments were made while on CNBC, emphasizing that the bar for rates to move in any direction has been set higher.
Goolsbee also mentioned that the new tariff threat is a significant concern for firms, describing it as ’really scary’. Nevertheless, he reassured that the Federal Reserve will factor in higher long-run market rates in their decision-making process.
He further commented that concerns about financial stability have so far been overblown. Goolsbee expressed gratification that the Supreme Court recognizes the importance of the Federal Reserve’s independence.
The Fed President’s comments come amid ongoing economic uncertainty, with firms and investors closely watching the central bank’s actions. Goolsbee’s remarks provide some insight into the potential direction of monetary policy over the next year or so, although the final decision will be influenced by a range of factors, including market conditions and economic data.
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