I'm not comfortable frontloading rate cuts: Chicago Federal Reserve Bank president

Group 1 - The Federal Reserve is experiencing internal disagreements regarding interest rate cuts, with some members advocating for a larger cut while others prefer to pause until more clarity on inflation is obtained [1][2][3] - The November consumer price index (CPI) showed annual inflation at 2.7%, which is lower than the estimated 3.1%, indicating a potential trend towards the Fed's 2% target [2][4] - Fed President Austin Goulsby expressed cautious optimism about the CPI report but emphasized the need for sustained progress in inflation and employment data before supporting further rate cuts [4][5][8] Group 2 - The current unemployment rate is reported at 4.6%, which raises concerns about the balance between inflation control and labor market stability [6][12] - Goulsby highlighted the importance of analyzing the components of inflation, noting that improvements in goods prices must not be offset by rising services inflation, which tends to be more persistent [10][11] - The market is predicting a potential interest rate cut in March, with a 58% probability, indicating expectations for a more accommodative monetary policy if inflation trends continue positively [21][24]