(Finance) – Austan Goolsbeepresident of Chicago Federal Reservesees a less pronounced rate-cutting path in 2025 than before, believes the US central bank’s key rate will fall by one “judicious amount” next year.
“THE’policy uncertainty “It makes it particularly difficult to make estimates about what the neutral rate is and what the inflation rate is in particular,” Goolsbee said in an interview with CNBC. “And that’s why I’m a little more casual” about the rate path for 2025. , although inflation is still headed toward the Fed’s 2% target.
“I believe we are on the path to 2% and in the next 12-18 months i rates could still drop by a fair amount“he said in another passage.
Goolsbee’s words came two days after the US central bank cut interest rates for the third time in a row, bringing them to a range of 4.25% to 4.5%. However, the FOMC has signaled that it will likely take a much slower approach to rate cuts next year, predicting only two reductions for 2025.