Federal Reserve officials are optimistic about the interest rate outlook for next year, but inflation concerns still persist
Federal Reserve Board member Goolsby recently expressed a positive outlook on the future interest rate trajectory, believing that next year's interest rate environment could see significant adjustments, generally trending downward.
However, Goolsby also emphasized the complex situation currently faced. Considering the base effects caused by inflation over the past few years and structural changes in the economy, he remains cautious about rapid rate cuts, worried that too quick policy adjustments could trigger new market volatility.
This view reflects the delicate balance within the Federal Reserve regarding policy pathways—addressing the need to support economic slowdown while preventing a rebound in inflation. Whether interest rates can see a substantial decline next year will still depend on further developments in inflation data and the performance of economic fundamentals.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Federal Reserve officials are optimistic about the interest rate outlook for next year, but inflation concerns still persist
Federal Reserve Board member Goolsby recently expressed a positive outlook on the future interest rate trajectory, believing that next year's interest rate environment could see significant adjustments, generally trending downward.
However, Goolsby also emphasized the complex situation currently faced. Considering the base effects caused by inflation over the past few years and structural changes in the economy, he remains cautious about rapid rate cuts, worried that too quick policy adjustments could trigger new market volatility.
This view reflects the delicate balance within the Federal Reserve regarding policy pathways—addressing the need to support economic slowdown while preventing a rebound in inflation. Whether interest rates can see a substantial decline next year will still depend on further developments in inflation data and the performance of economic fundamentals.