Fed's Goolsbee, on CNBC, says Fed has room to cut rates

Group 1 - The Federal Reserve Bank of Chicago President Austan Goolsbee indicated that if inflation decreases, there is potential for the central bank to lower its interest rate target [1][2] - Goolsbee suggested that the neutral rate could be approximately 100 to 125 basis points lower than the current target range of 4% to 4.25%, potentially settling around 3% with inflation at 2% [2] - The Chicago Fed's recent report projected that the unemployment rate likely remained steady at 4.3% in September [3] Group 2 - Goolsbee described the current Fed policy as "mildly restrictive" while acknowledging ongoing inflation risks [3] - He emphasized caution regarding aggressive interest rate cuts due to inflation being above target for over four and a half years [3]