Fed’s Goolsbee on rate cuts: Market has gotten ahead of themselves on euphoria

Dhwani Mehta FXStreet

In an interview with Fox TV early Wednesday, Federal Reserve Bank of Chicago President Austan Goolsbee said that the “market has gotten ahead of themselves on euphoria” on likely interest rate cuts.

Additional comments

If inflation keeps coming down, Fed can reconsider how restrictive it is.

Fed's decisions are not political.

What determines whether Fed can be less restrictive is inflation.

Fed should not be bullied by what the market wants.

Market reaction

At the time of writing, the US Dollar Index is holding steady at around 102.20, consolidating the previous decline.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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