Goolsbee says persistent inflation and oil pressure could push Fed cuts out of 2026
Chicago Fed President Austan Goolsbee said 4% inflation would argue against returning rates to 2% and warned that prolonged oil-driven price pressure could delay or even change the path of policy moves.
From the sources (17 posts)
@financialjuiceFed's Goolsbee: I am concerned about how long the Iran war will last. More rate cuts in 2026 are unlikely without disinflation.
@firstsquawkGOOLSBEE: IF INFLATION IS 4%, NOBODY SHOULD BE THINKING RATES SHOULD GO BACK TO 2%
@deitaoneGOOLSBEE: IF INFLATION IS 4%, NOBODY SHOULD BE THINKING RATES SHOULD GO BACK TO 2%
@financialjuiceFed's Goolsbee: If inflation is 4%, nobody should be thinking rates should go back to 2%.
@firstsquawkFED GOOLSBEE: WE WILL GET INFLATION TO 2%
@wallstengineFED GOOLSBEE: WE HAVE TO WAIT AND SEE WHAT HAPPENS WITH OIL MARKETS THE LONGER THIS GOES, IF INFLATION STAYS UP, THAT PUSHES CUTS OUT OF 2026 THERE ARE CIRCUMSTANCES WHERE RATES CAN GO UP, AND CIRCUMSTANCES FOR A HOLD, OR DECREASES
@financialjuiceFed's Goolsbee: If I saw progress on core inflation, I would be feeling better, even if headline inflation was high.
@deitaoneGOOLSBEE: WE HAVE TO WAIT AND SEE WHAT HAPPENS WITH OIL MARKETS
@deitaoneGOOLSBEE: IF INFLATION DOESN'T SHOW IMPROVEMENT, TIME FOR OPTIMISM GETS POSTPONED
@deitaoneGOOLSBEE: THE LONGER THIS GOES, IF INFLATION STAYS UP, THAT PUSHES CUTS OUT OF 2026
@financialjuiceFed's Goolsbee: If services inflation comes unglued, that would be a bad sign.
@firstsquawkFED'S GOOLSBEE: WE HAVE TO WAIT AND SEE WHAT HAPPENS WITH OIL MARKETS
@financialjuiceFed's Goolsbee: We're going to have to wait and see what happens with oil markets.
@financialjuiceFed's Goolsbee: If inflation doesn't show improvement, time for optimism gets postponed.
@firstsquawkFED'S GOOLSBEE SAYS INTEREST RATES COULD RISE, STAY THE SAME, OR FALL DEPENDING ON CERTAIN CONDITIONS.
@financialjuiceFed's Goolsbee: The longer this goes, if inflation stays up, that pushes cuts out of 2026.
@financialjuiceFed's Goolsbee: There are circumstances where rates can go up, and circumstances for a hold, or decreases.