Chicago·San Francisco Fed Presidents “Rate cut will be implemented when uncertainty is resolved”

Possibility Of Rate Cuts Increasing At Us Federal Reserve (Source: Forbes)

Officials from the Federal Reserve continue to mention the possibility of rate cuts, reigniting expectations for a shift in monetary policy.

Austan Goolsbee, President Of The Federal Reserve Bank Of Chicago, recently stated that “If inflation stabilizes within the 2% target range and overall economic uncertainties are resolved, the Fed will shift towards lowering rates.” However, he also emphasized the need to avoid hasty adjustments, noting that some indicators remain unstable.

Mary Daly, President Of The Federal Reserve Bank Of San Francisco, expressed a similar stance. She noted that “A rate cut seems likely this fall” and mentioned that if the signs of controlled inflation persist, the Fed might adopt a dovish stance earlier.

Neither president has pinpointed a definitive timing for cuts, but their comments align with Chairman Jerome Powell's recent remarks that “Rates are already at their peak,” adding weight to the possibility of a policy shift within the year. The market is now focusing on the Federal Open Market Committee (FOMC) meetings in July and September.