Fed’s Goolsbee cautions against market euphoria on rate cuts

Chicago Fed President Austan Goolsbee, in an interview with Fox News overnight, said that investors might be “a little ahead of themselves” with their “euphoria” as stock markets surged to record highs following Fed’s announcement last week.

Goolsbee did acknowledge that if inflation continues its downward trend towards target, Fed might reassess its restrictive stance. “If inflation continues to come down to target, then the Fed can reconsider how restrictive it wants to be,” he stated.

However, Goolsbee was clear in emphasizing Fed’s independence, asserting that the central bank will not be “bullied” by market pressures.