Interest Rates to Drop as Inflation Progresses, Says Fed's Goolsbee

In a recent interview with CNBC, Austan Goolsbee, President of the Federal Reserve Bank of Chicago, shared insights on the future of U.S. interest rates. Goolsbee expressed optimism about the economy's resilience and indicated that the Federal Reserve might lower interest rates within the next 12 to 18 months, provided there is significant progress on inflation.

"The Fed needs to maintain a steady approach and consider the long-term economic outlook. While markets are eager for quick information, such immediacy isn't feasible at this juncture," Goolsbee remarked. He emphasized the importance of patience and strategic planning in navigating the current economic landscape.

Addressing Trump Administration Tariffs

On the topic of the Trump administration's tariffs, Goolsbee highlighted the need for clarity before the Fed can take any action. "Understanding the duration of these tariffs and the potential for retaliation is crucial before we can make informed decisions," he stated, underscoring the complexity of the situation and the Fed's cautious stance.