According to Odaily, Chicago Federal Reserve President Goolsbee has indicated that the pace of interest rate cuts may decelerate by 2025. He expressed hope that the Federal Reserve will be able to reduce rates to a level close to the neutral range by the end of 2025.
Goolsbee's comments come amid ongoing discussions about the future direction of monetary policy in the United States. The Federal Reserve has been navigating a complex economic landscape, balancing the need to control inflation while supporting economic growth. The prospect of slower rate cuts suggests a cautious approach by the Fed, aiming to stabilize the economy without triggering excessive inflationary pressures.
The neutral interest rate is considered a level that neither stimulates nor restricts economic activity. Achieving this balance is crucial for maintaining economic stability. Goolsbee's remarks highlight the Fed's strategic planning as it looks ahead to 2025, considering both domestic and global economic factors that could influence its policy decisions.