Optimistic Outlook for 2025

United States Federal Reserve Bank of Chicago President Austan Goolsbee expressed his optimism for a "soft landing" in the economy by 2025 during his speech at the Wisconsin Bankers Association 2025 Midwest Economic Forecast Forum. He highlighted the progress in disinflation and shared his views on the current inflation trends.

Inflation Trends and Fed's Focus

Goolsbee discussed the recent inflation report, describing it as a mix of encouraging and discouraging news. He emphasized the Federal Reserve's preference for Personal Consumption Expenditures (PCE) inflation over the Consumer Price Index (CPI), noting that PCE inflation has been very close to the bank's 2% target in recent months.

Impact of New Administration's Policies

Addressing the potential effects of the incoming Trump administration's policies on monetary policy, Goolsbee stated that the Fed considers the overall impact of all policies. He mentioned that if President-elect Donald Trump and Congress implement policies that lead to price increases, the Federal Reserve will take these factors into account in its monetary policy decisions.