Federal Reserve Member Goolsbee: Challenges May Affect Interest Rate Path in 2025

December 20, 2024

US Federal Reserve Member Austan Goolsbee said in his remarks on Friday that it is good to see better-than-expected inflation figures, but he pointed out that there is more uncertainty on the horizon. He explained that the US Federal Reserve is still on track to limit inflation to 2%, with expectations of significant price declines over the next 12 to 18 months.

Goolsbee added that the labor market remains stable, and that it is important to maintain its stability in the future. He stressed that maintaining employment stability requires prices to fall to neutral levels. He pointed out that the current interest rate is still far from the neutral rate, which is estimated at about 3%, indicating that the Federal Reserve's monetary policy has become less restrictive than it was in the past.

Goolsbee continued: "Our goal is to reduce inflation to 2%, and we hope that wages will increase faster than prices in the future." He added that any changes affecting jobs and prices will remain under constant monitoring. He stressed that the Federal Reserve continues to work on addressing the effects of economic policy on inflation and the labor market.

The US Federal Reserve member pointed out that uncertainty in monetary policy is part of the reason for the deterioration$BTC $XRP