Chicago Fed's Goolsbee says interest rates could fall 'a fair bit more,' but more inflation progress is needed

Inflation and Interest Rates - Chicago Fed president Austan Goolsbee emphasizes the need for further progress on inflation falling to the Federal Reserve's 2% target before supporting any rate cuts [1][2] - Goolsbee notes that while there are signs of improvement in inflation, concerns remain, particularly regarding persistent services inflation, which is not influenced by tariffs [3][4] - The latest Consumer Price Index (CPI) data shows a 2.4% increase in prices year-over-year, with core inflation (excluding food and energy) rising by 2.5% [2] Economic Growth and Job Market - Goolsbee highlights the importance of a stable job market, which has remained steady for the past few months, as a factor in considering rate cuts [2] - He suggests that the Fed may have room to lower rates further before reaching a neutral level that neither stimulates nor restricts economic growth [4] Market Expectations - Data from the CME Group indicates that investors perceive a 90% chance that the Fed will maintain current interest rates at the upcoming policy meeting on March 18 [5]