According to Odaily, Federal Reserve official Austan Goolsbee has expressed his expectation that the Federal Reserve will continue to lower interest rates to achieve a stance that neither restricts nor stimulates economic activity. Goolsbee stated, "Unless there is compelling evidence of an overheating economy, I see no reason not to continue reducing the federal funds rate." He emphasized that the pace of rate cuts will depend on the economic outlook and prevailing conditions. However, he believes that the path forward is clear, leading to lower rates that approach a neutral level.
Goolsbee's projection for the neutral rate aligns closely with the median estimate of officials, which was forecasted at 2.9% in September. He noted that in recent months, overall inflation has frequently been lower than expected, though it has not significantly exceeded the 2% target. This assessment suggests a cautious approach by the Federal Reserve in adjusting rates, aiming to balance economic growth without triggering excessive inflation. The focus remains on aligning interest rates with the neutral rate to maintain economic stability.