Fed/Goolsbee: Interest Rates Will Decline Further in the Next 12 Months

Forex - Chicago Fed President Austan Goolsbee reiterated his view that the central bank will need to further lower interest rates within the next 12 months as inflation declines, or risk damaging the labor market; however, like other interest rate setters in the U.S., he provided little guidance on the exact timing or pace of future rate cuts. Speaking at Crain's Power Lunch in Chicago, Goolsbee said, "I believe that interest rates will decrease reasonably from their current levels within the next year, but since conditions change, we meet every six weeks." Financial markets are pricing in a roughly 75% chance of a quarter-point rate cut at the Fed's meeting on December 17-18.