Fed’s Goolsbee: Waiting for more data the “wiser choice”

Chicago Fed President Austan Goolsbee explained his dissent at this week’s FOMC meeting, where he voted to hold rates rather than support the 25bps cut. He said policymakers should have waited for more incoming data, particularly on inflation, arguing that delaying the decision into the new year “would not have entailed much additional risk” and would have allowed the Fed to assess a more complete set of economic readings.

In a statement, Goolsbee noted that feedback from businesses and consumers in his district consistently points to prices as “a main concern”. At the same time, he described the broader economy as showing stable growth, with a labor market that is “only moderately cooling”. He characterized the current environment as one of “low hiring, low firing,” suggesting firms are responding to uncertainty rather than a traditional cyclical slowdown.

While acknowledging that recent inflation pressures may be linked largely to tariffs and could ultimately prove “transitory”, Goolsbee cautioned against assuming that outcome too quickly. He reiterated optimism that interest rates can fall meaningfully over the coming year, but stressed discomfort with heavily front-loading cuts.

Full statement of Fed’s Goolsbee here.