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Chicago Fed's Goolsbee Watching for Progress on Inflation Before Cutting Rates
Goolsbee says further rate cuts hinge on seeing actual progress in bringing inflation down to 2%
Published on Feb. 24, 2026
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Chicago Federal Reserve President Austan Goolsbee said Tuesday that he remains optimistic about making more interest rate cuts this year, but that will depend on seeing actual progress in bringing inflation back down to the central bank's 2% target. Goolsbee emphasized that he does not want to 'front-load too many rate cuts' when expectations for a decline in inflation keep getting pushed back.
Why it matters
Goolsbee's comments provide insight into the Fed's thinking as it navigates the delicate balance of controlling inflation without stalling economic growth. His remarks suggest the central bank will take a cautious approach to further rate cuts, prioritizing tangible progress on inflation over aggressive monetary easing.
The details
Goolsbee said the Fed's benchmark policy rate is close to or even slightly below the central bank's estimate of neutral, a level designed to neither boost nor slow economic growth. He is watching different components of inflation, notably in goods where tariffs have driven up prices, as well as stubbornly high services inflation. Goolsbee said the Supreme Court's decision to strike down President Trump's tariffs enacted under emergency economic powers could lead to faster inflation relief.
- Goolsbee made these comments in a speech at the National Association for Business Economists Conference on February 24, 2026.
The players
Austan Goolsbee
The president of the Chicago Federal Reserve.
What they’re saying
“I remain optimistic that there can be more rate cuts this year. But that hinges on seeing actual progress on inflation that shows we are on a path back to 2%.”
— Austan Goolsbee, President, Chicago Federal Reserve (Yahoo Finance)
“If you keep seeing (inflation) pushing off when it's supposed to be peak on goods inflation, that's not a good sign.”
— Austan Goolsbee, President, Chicago Federal Reserve (Yahoo Finance)
“With inflation at 3%, it is not obvious that our interest rate policy is even restrictive.”
— Austan Goolsbee, President, Chicago Federal Reserve (Yahoo Finance)
What’s next
Goolsbee said the Fed could make 'several more cuts' by the end of the year if inflation drops, but that 'front-loading too many rate cuts' is 'not prudent' when expectations for a decline in inflation keep getting pushed back.
The takeaway
Goolsbee's comments suggest the Fed will take a cautious, data-driven approach to further interest rate cuts, prioritizing tangible progress on inflation over aggressive monetary easing. The central bank appears focused on bringing inflation back down to its 2% target before considering additional rate reductions.
