PiCK
Chicago Fed President: "Several rate cuts may be possible this year… a cautious approach is needed"
Summary
- Austan Goolsbee, president of the Chicago Fed, said rate cuts may be possible several times this year.
- He said he holds a relatively optimistic view within the Fed on rate cuts this year.
- However, he stressed that a cautious approach is needed because rate cuts could lead to an overheating economy, and that such a move should wait until there is evidence inflation is falling toward the 2% target.
Forecast Trend Report by Period
Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said on the 26th (local time) that while several interest-rate cuts may be possible this year, a cautious approach is needed.
In an interview with Fox News that day, Goolsbee said, "I’m reasonably confident that rates could come down a few more times this year."
He explained that he is among those within the central bank (Fed) who hold a relatively optimistic view on rate cuts this year.
However, Goolsbee stressed that caution is warranted because rate cuts could lead to an overheating economy. He added that he does not want to bring forward rate cuts too aggressively until there is evidence that inflation is indeed falling toward the Fed’s 2% target.
Ko Jeong-sam, Hankyung.com reporter jsk@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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