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2026-02-17 22:07:32
[Goursby: Concerns Remain About Falling Inflation; Multiple Rate Cuts Possible in 2026] ⑴ Chicago Fed President Goolsby said on Tuesday that the recent decline in overall inflation is partly attributable to base effects, while inflation in the services sector is "not mild." He pointed out that prices of goods with higher tariff content tend to rise more sharply, adding uncertainty to the future path of inflation. ⑵ Regarding monetary policy, Goolsby believes that multiple rate cuts are still possible in 2026, and related discussions are currently underway to address the recovery in inflation. He emphasized that more evidence is needed to show that inflation is consistently falling back to the 2% target level. ⑶ Regarding the assessment of the neutral interest rate, Goolsby considers the 3% policy rate a "rough" estimate. This statement suggests that the current interest rate level may be close to neutral, providing room for future rate cuts. ⑷ When discussing the selection of a Fed Chair, Goolsby said he has known candidate Kevin Warsh for a long time, worked with him during the financial crisis, and called himself a "loyal fan" of Warsh. This statement shows that even though policy stances may differ, the Federal Reserve still recognizes Warsh's professional competence.
