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š£ļøFed member Goolsbee:
ā¢The Fed should understand why the 10-year yield is rising and monitor long yields.
ā¢Rates may need to be lowered next year.
ā¢Core PCE is still too high.
ā¢If there is disagreement on the neutral rate, it would make sense to start slowing the pace of rate cuts.
ā¢As long as inflation continues to fall, interest rates will be much lower than they are now.
Unless conditions change, I feel good about a neutral path of 12-18 months.
Current Fed policy is restrictive.
ā¢I donāt think rates will go back to pre-pandemic levels.