Fed's Goolsbee: Commitment to 2% inflation target strong, timing of rate cuts still needs careful assessment

According to gold ten reports, the fed governor goolsby stressed in his latest speech, the fed's commitment to the 2% inflation target ‘rock solid’, and said that if the market inflation expectations rise, the fed will have to take action.

On the outlook for rate cuts, Goolsbee pointed out that the economic slowdown will be the reason for rate cuts, but if inflation exceeds the tariff level or exceeds expectations, the Fed will have to adjust its outlook. He warned that the longer the Fed waits, it may mean that rate cuts will need to be delayed, and that ‘waiting can be costly.’

Goolsbee admitted that it is ‘not realistic’ to know the trend of interest rates, and said the Fed needs to consider the impact of tariffs, the upcoming tax cuts and other factors. He stressed that unemployment and inflation do reflect the Fed's progress in achieving its dual mission, while noting that ‘the economy remains very vibrant at this time.’