Chicago Fed President Goolsbee: Open to Interest Rate Cuts in 2026

Chicago Fed's Vision for 2026

Chicago Fed President Austan Goolsbee shared his economic expectations for the year 2026. Goolsbee stated that there would be strong economic growth this year, which could pave the way for further reductions in interest rates.

Interest Rate Cut Scenario

In an interview, Goolsbee said, "As we enter 2026, I am still optimistic that the economy will continue to grow at a reasonable and stable pace. If inflation falls to around 2%, I believe interest rates could decrease," he stated.

Policies and Uncertainties

Goolsbee, who noted that he voted against the Fed's interest rate cut decision last month, emphasized that he wanted to see more economic data. Concerns among businesses and consumers in the Chicago Fed region about inflation persist. Goolsbee also added that the current economic uncertainty is fueling low hiring and low firing rates.