Chicago Fed President Austan Goolsbee has reiterated his support for gradual reduction in the fed funds rate, provided there is no “convincing evidence of overheating” in the economy. He noted that the pace of rate adjustments would depend on evolving economic conditions and the broader outlook.
“The through line to me is pretty clear that we’re on a path, and that path is going to lead to lower rates, closer to what you might call neutral,” Goolsbee emphasized overnight.
Policymakers will assess several key data points ahead of the December meeting. Goolsbee cautioned against drawing firm conclusions from one month’s data. He remarked that inflation is now “not that far above the 2% target”.
