Fed's Goolsbee Undecided on December Rate Cut Amid Inflation Concerns

Chicago Federal Reserve President Austan Goolsbee expressed uncertainty about cutting interest rates again in December due to ongoing inflation concerns and limited economic data amid a government shutdown. He noted that inflation remains above the Fed's 2% target, with core inflation and core services inflation trending upward, which makes relying on inflation being transitory uneasy. Despite voting for a recent rate cut, Goolsbee emphasized caution about "front-loading" rate cuts and highlighted stable unemployment rates as a factor in his deliberations. The lack of official inflation data forces the Fed to rely heavily on private-sector job reports to assess economic health. Goolsbee also mentioned the challenge of timing policy moves during economic transitions, balancing the risks of inflation against job market conditions. He remains undecided about future rate cuts, stressing the importance of careful consideration amid uncertainty.