Posted 1/19/2024, 2:33:32 PM
As Inflation Falls, Chicago Fed President Sees Potential for Rate Cuts
- Chicago Fed President Goolsbee sees potential for interest rate cuts as inflation falls, enabling a "golden path" for the economy
- Inflation dropping significantly in 2023, bringing it toward Fed's 2% target
- Timing and extent of rate cuts depends on incoming data showing inflation and jobs outlook
- Goolsbee reiterated Fed's meeting-by-meeting approach, not pre-committing to rate cuts
- Markets pricing in over 50% chance of a March rate cut, 140 basis points of cuts by December 2024