economy

February 24, 2026

Fed's Goolsbee calls for a hold on cuts as current rate of inflation is 'not good enough'

The Chicago Fed president said Tuesday that cuts aren't appropriate until there's more evidence that inflation is on its way down.

Fed's Goolsbee calls for a hold on cuts as current rate of inflation is 'not good enough'

TL;DR

  • Chicago Fed President Austan Goolsbee believes interest rate cuts are premature until inflation shows a clearer downward trend.
  • Goolsbee warned against assuming inflation is transitory, referencing past mistakes by policymakers.
  • Current inflation, measured by the consumption expenditures price index, is at 3%, above the Fed's 2% target.
  • Stubbornly high housing inflation is a concern, and the Fed needs to remain vigilant.
  • Market expectations suggest a potential rate cut around June or July, with Fed Governor Christopher Waller also advocating for a cautious approach.

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