MNI BRIEF: Fed's Goolsbee Uneasy Of Frontloading Cuts Too Much

Chicago Federal Reserve Bank President Austan Goolsbee said Thursday still-elevated inflation makes him leery of cutting interest rates too much too soon, although he does believe borrowing costs can come down over time. 

"In the near-term, I'm a little uneasy frontloading too many rate cuts and counting on, this will be transitory and inflation will come back down," Goolsbee said during a Q&A with the CFA Society of Indianapolis. "We have set a target of 2% inflation -- 3% inflation is too high." (See: MNI INTERVIEW: High Bar For More Cuts As Neutral Nears-Kaplan) 

FOMC members are deeply divided on whether to cut rates again in December. A belated September jobs report showing an unexpectedly strong gain of 119,000 new jobs, but also a rise in the jobless rate to 4.4%, did little to resolve matters.