Fed's Goolsbee: The latest inflation data was favorable

Positive Inflation Data from Fed's Goolsbee

Fed's Goolsbee expressed that the latest inflation data is favorable, suggesting that if inflation shows signs of waning, there would be room to cut rates. He stated, "As long as we know we're heading back to 2% inflation, rates can come down significantly."

Conditions for Rate Cuts

However, he indicated that the decision to cut rates hinges on sustained progress in cooling inflation. Current indicators of the job market are suggesting steady cooling, and he noted that upcoming data will heavily influence future decisions. He hinted at the possibility of a rate cut in January if the data supports such a move.

Market Reaction

Market pricing shows a 25% chance for a rate cut in January, which indicates that there could be shifts in market expectations regarding the Fed's monetary policy. Goolsbee's comments could serve as a significant signal regarding the Fed's future interest rate decisions.