🔥Federal Reserve's Goolsbee: It May Be Necessary to Wait Until 2027 to Cut Rates


On April 15, Chicago Federal Reserve President Goolsbee stated that if the Iran war causes oil prices to remain high for a long time, thereby slowing the process of inflation returning to the Fed's 2% target, the Fed may need to wait until 2027 to cut rates. Goolsbee said during the Semafor World Economic Conference that he originally thought there could be multiple rate cuts in 2026 or even earlier; but if inflation remains high, the timing could be pushed back beyond 2026. He added that in some cases, interest rates might be raised, and if the Middle East oil shock is resolved and inflation drops again, the rate-cutting agenda could be resumed.
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