The President of the Federal Reserve Bank of Chicago, Austan Goolsbee, expressed his hesitation regarding a rate cut at the upcoming September meeting, noting that he has not made a final decision yet. In an interview with Bloomberg, Goolsbee stated that recent data indicates weakness in the labor market, but he is still uncertain about its impact on the overall economy. He pointed out that upcoming monthly job reports, along with inflation data, will help him make the appropriate decision.
Goolsbee had previously expressed concern about the impact of tariffs on inflation and the labor market, considering that these tariffs could lead to a "stagflation" shock, where both inflation and unemployment rates are negatively affected at the same time.
In contrast, Bank of America expects the Federal Reserve to cut interest rates twice this year, in September and December, based on the weak job report for August. Meanwhile, the President of the Federal Reserve Bank of New York, John Williams, indicated that gradual rate cuts may occur if economic data continues to trend as expected.
Thus, Goolsbee's position remains pivotal in determining the upcoming monetary policy directions, especially in light of the current economic challenges.