Federal Reserve's Goolsbee: Firm commitment to 2% inflation target, need to cautiously assess timing of rate cuts

ChainCatcher news, according to Jinshi reports, Federal Reserve Governor Goolsbee emphasized in his latest speech that the Federal Reserve's commitment to the 2% inflation target is "rock solid," and stated that if market inflation expectations rise, the Federal Reserve will have to take action.

Regarding the prospects for interest rate cuts, Goolsbee pointed out that an economic slowdown would become a reason for rate cuts, but if inflation exceeds tariff levels or expectations, the Federal Reserve would have to adjust its outlook. He warned that the longer the Federal Reserve waits, the more likely it is that rate cuts will need to be delayed, stating that "waiting may come at a cost."

Goolsbee acknowledged that it is "not realistic" to understand interest rate trends at the moment, and indicated that the Federal Reserve needs to consider the impact of tariffs, upcoming tax cuts, and other factors. He emphasized that the unemployment rate and inflation do reflect the Federal Reserve's progress in achieving its dual mandate, while also noting that "the current economy remains very strong."