Chicago Fed's Goolsbee says he's cautious about further rate cuts during shutdown

Core Insights - Chicago Federal Reserve President Austan Goolsbee expressed hesitation about further interest rate cuts due to a government shutdown causing a blackout on key inflation data [1][2] - Goolsbee highlighted concerns over the lack of important price reports, especially as general inflation has been trending higher recently [1][5] Inflation Data Concerns - The Bureau of Labor Statistics (BLS) will not release the consumer price index report for October, which was scheduled for next week, raising concerns about the availability of inflation data [3] - The September report indicated an inflation rate of 3% annually, above the Fed's target of 2%, while core inflation (excluding food and energy) was running at a 3.6% annualized pace prior to the shutdown [4][5] Labor Market Indicators - The Chicago Fed updated its dashboard of labor market indicators, showing a stable unemployment rate of 4.36% in October, which is a slight increase from September [2] - The data indicated a steady pace of hirings and layoffs, suggesting stability in the job market despite inflation concerns [2] Future Rate Decisions - Goolsbee will participate in the Federal Open Market Committee's decision-making in December regarding potential rate cuts, following reductions in the previous two meetings [5] - He emphasized a cautious approach to rate cuts, suggesting that the settling point for rates will likely be below current levels [5]