Speaking overnight, Chicago Fed President Austan Goolsbee noted he is “somewhat uneasy” with front-loading too many rate cuts based solely on slowing payroll growth. With inflation above 2% for nearly five years and moving “the wrong way,” he warned that simply assuming price pressures are transitory is a risky strategy.
Separately, San Francisco Fed President Mary Daly reiterated that further easing will likely be needed but emphasized a measured pace. She argued that cutting “a little bit more over time” while reassessing incoming data is the safer way to balance the Fed’s dual mandate.
Daly cautioned that moving too quickly could risk undermining either employment or price stability. A gradual approach, she said, allows the central bank to “actually get to a good achievement” by avoiding overcorrections.
