Several Fed officials shared their views overnight but avoided giving specific guidance on what to expect at the December 18 FOMC rate decision. The tone of their remarks highlighted confidence in recent economic progress while maintaining a cautious stance on future rate adjustments.
Fed Governor Adriana Kugler characterized the US economy as being in a “good position” following significant strides toward maximum employment and price stability. She acknowledged that the labor market remains solid and inflation is steadily moving toward 2% target, albeit with “some bumps along the way.”
Kugler emphasized that Fed is moving policy toward a “more neutral setting” while remaining vigilant for risks or supply shocks that could reverse progress.
San Francisco Fed President Mary Daly reiterated the importance of recalibrating policy but left the timing of adjustments undecided. “Whether it will be in December or sometime later, that’s a question we’ll have a chance to debate and discuss in our next meeting,” she said.
Chicago Fed President Austan Goolsbee shared a more forward-looking perspective, suggesting that “over the next year it feels to me like rates come down a fair amount” from current levels. However, he acknowledged the importance of meeting regularly to reassess economic conditions as they evolve.
