Fed's Goolsbee says central bank positioned for further rate cuts
Chicago Federal Reserve President Austan Goolsbee stated that the U.S. central bank is well positioned to lower interest rates further if economic data supports it. In a CNBC interview, he highlighted cooling inflation and a solid labor market as key factors. The remarks follow the Fed's recent half-percentage-point rate cut.
On October 3, 2025, Chicago Fed President Austan Goolsbee appeared on CNBC's "Squawk Box," expressing optimism about the Federal Reserve's current stance on monetary policy. He emphasized that the central bank is in a strong position to implement additional rate reductions should incoming economic indicators justify such moves.
"We're in a good place," Goolsbee said during the interview, which aired on Thursday. This assessment comes in the wake of the Fed's September decision to cut its benchmark federal funds rate by 50 basis points, bringing the target range to 4.75% to 5%. Goolsbee noted that recent data shows inflation continuing to moderate toward the Fed's 2% target, while the labor market remains resilient with unemployment holding steady around 4.2%.
The Chicago Fed president underscored the data-dependent nature of future policy decisions. He pointed to upcoming reports on employment and consumer prices as critical for gauging the economy's trajectory. Goolsbee's comments align with broader Fed communications, where officials have signaled a cautious approach to easing amid balanced risks to growth and price stability.
Background on Goolsbee's perspective includes his role as a voting member of the Federal Open Market Committee this year. His remarks provide context for the Fed's pivot from aggressive rate hikes in 2022-2023 to normalization efforts. Economists view such statements as reinforcing expectations for at least one more quarter-point cut later in 2025, though persistent inflation could alter that path.
Goolsbee also touched on global factors, mentioning that international trade tensions and energy prices remain watchpoints, but domestic indicators are currently driving policy. Overall, his interview reflects a consensus among Fed regional presidents that the economy is on a sustainable path, allowing for measured adjustments to borrowing costs.