Chicago Fed President Austan Goolsbee highlighted Fed’s outlook for an extended period of monetary easing in an interview with FOX Business overnight.
He noted, “this is a process over a year or more that we’re trying to get the rates down to normal.”
He also pointed out that the Fed’s latest forecasts suggest “a lot of cuts” ahead, with policymakers aligned on this approach.
Fed has already begun easing, cutting its policy rate by 50bps at last meeting, bringing it to the 4.75%-5.00%.
Goolsbee refrained from committing to a specific rate cut size at the upcoming November meeting, stressing that the overall process of returning rates to more “normal” levels is the focus.
Additionally, Goolsbee noted cautionary signals in the labor market, though he remarked that the current unemployment rate of 4.2% appears to be at a sustainable level.
