Fed's Goolsbee: Can't rule out a March rate cut

Joshua Gibson FXStreet

Chicago Federal Reserve (Fed) President Austan Goolsbee added his take to comments from Fed officials on Friday, stating that he did not rule out the possibility of a rate cut at the Fed's meeting next March.

According to reporting by the Wall Street Journal, Chicago Fed President Goolsbee expects rates to be lower by this time next year, but not by much, giving additional weight to the Fed's projected cuts on the dot plot next year.

Goolsbee also noted that the Fed might need to shift focus to its jobs mandate next year, with inflation cooling and the US employment landscape seeing overarching threats from a slowdown in key economic factors.

Goolsbee's comments come on the tail end of earlier statements from Atlanta Fed President Raphael Bostic, who stated that he only sees two 25-basis-point rate cuts through 2024, and not until the third quarter.

Market Reaction

The US Dollar Index (DXY) twitched higher on reaction, chalking in a new high for Friday above 102.60.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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