Chicago Fed President Austan Goolsbee expressed opposition to this week's 25-basis-point interest rate cut, saying the Fed should wait for more data on inflation and the labor market before acting. He stressed that concerns among businesses and consumers about rising prices remain high.
Goolsbee favored holding off on a rate cut until early next year to allow policymakers to assess the latest economic data without adding too much risk to the labor market, which he said was only moderately slowing.
He was one of three policymakers who dissented in the Fed's 9-3 vote, along with Kansas City Fed President Jeffrey Schmid, who wanted rates to remain on hold, while Fed Governor Stephen Miran supported a larger cut.
Goolsbee said inflation has been above the 2% target for more than four years and progress toward lowering it has stalled in recent months, making a cautious approach more appropriate.
Still, he expressed confidence that interest rates could be cut significantly next year if new data shows inflation returning to the Fed's target.
