Chicago Fed President Austan Goolsbee stated in a CBS interview that a rate cut in September is not a foregone conclusion. But he pointed out that current economic conditions differ significantly from when Fed initially set rates at their present levels.
Goolsbee highlighted the impact of maintaining high rates while inflation decreases, noting that this approach effectively tightens monetary policy further. He warned that “if you keep too tight for too long, you will have a problem on the employment side of the Fed’s mandate.”
