Goolsbee sees Fed on track to lower rates

Published 02/06/2025, 18:16
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com -- Austan Goolsbee, President of the Chicago Federal Reserve Bank, expressed his belief on Monday that the U.S. central bank will be able to reduce short-term borrowing costs once the uncertainty caused by tariff policies is resolved.

During a webcast interview with the Quad Cities Regional Business Journal in Davenport, Iowa, Goolsbee stated that if the economy can navigate through this challenging period, the dual mandate looks promising. The dual mandate of the Fed is a reference to its two primary objectives: full employment and price stability.

Goolsbee further stated his ongoing belief that if the economy remains stable and tariffs do not prove to be as severe as announced on April 2, the Fed’s policy rate is likely to be notably lower within the next 15 months.

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