TechFlow news, on March 21, according to Jinshi News, Federal Reserve Governor Austan Goolsbee emphasized in his latest speech that the Fed's commitment to the 2% inflation target is "rock solid," and stated that if market inflation expectations rise, the Fed will have to take action.
Regarding the outlook for rate cuts, Goolsbee pointed out that an economic slowdown would justify lowering rates, but if inflation exceeds tariff-related levels or runs hotter than expected, the Fed will have to adjust its outlook. He warned that the longer the Fed waits, the more likely rate cuts could be delayed, saying, "waiting could come at a cost."
Goolsbee acknowledged that it is currently "unrealistic" to know which way interest rates are heading, and said the Fed needs to consider the impact of tariffs, upcoming tax reductions, and other factors. He emphasized that both unemployment and inflation genuinely reflect the Fed's progress toward achieving its dual mandate, while noting that "the economy remains quite vibrant at the moment."
