Fed's Goolsbee Warns Against Reflexively Lowering Rates

Chicago Fed President Austan Goolsbee cautioned against reflexively cutting interest rates in response to faster productivity growth, warning that doing so can sometimes increase inflation. The remarks, delivered at the Milken Institute Global Conference, reinforce a cautious, data-dependent Fed stance rather than signaling an immediate policy shift.

Analysis

Chicago Fed President Austan Goolsbee cautioned against reflexively cutting interest rates in response to faster productivity growth, warning that doing so can sometimes increase inflation. The remarks, delivered at the Milken Institute Global Conference, reinforce a cautious, data-dependent Fed stance rather than signaling an immediate policy shift.