Chicago Fed President Austan Goolsbee struck a cautious tone, telling Bloomberg TV that while next month’s FOMC meeting is “live,” the recent pickup in services inflation has made him hesitant about supporting a rate cut.
He pointed to the latest CPI report, where services costs accelerated in a way “probably not driven by tariffs,” calling it a “dangerous data point” for Fed’s inflation fight.
In contrast, Boston Fed President Susan Collins signaled a greater willingness to cut rates soon, telling the Wall Street Journal she could back easing as early as September. Collins emphasized that higher tariffs could weigh on consumer purchasing power and ultimately weaken spending, while also warning that labor market risks are becoming more visible.
Collins acknowledged that she expects inflation to keep rising through the end of 2025 before easing again in 2026, but still viewed the risks to growth and employment as important factors that justify keeping the option of cuts on the table.
