MNI: Fair Bit Of '26 Fed Cuts, If Inflation On Track- Goolsbee

Federal Reserve Bank of Chicago President Austan Goolsbee said Thursday he remains optimistic that interest rates can come down a significant amount over the next year, but stressed he needs some more assurance that inflation is on track to the central bank's 2% goal. 

"This a lot to like" about the November CPI report released Thursday, said Goolsbee in an interview with Fox Business. "But we are going to want to see progress in services and progress in a couple of places on a sustained basis." (See: MNI: Fed Biased To Ease With Focus On Jobs - Ex-Officials) 

"If we get stabilized full employment and we're on path to 2%, I would be comfortable with rates being a fair bit below where they are today. I just am uncomfortable front loading the rate cuts before we're sure that we're actually back headed to 2%," he said, suggesting a higher bar for cuts earlier in 2026. "What we need is some assurance that this thing is transitory."