Fed’s Goolsbee: Uncertainty warrants patience, but rates likely be lower in 12-18 months

Chicago Fed President Austan Goolsbee struck a cautious but balanced tone in his latest remarks, saying Fed should “wait to see some of these things get cleared up” given the high degree of policy uncertainty.

Speaking to CNBC, he noted a shift in tone among business and civic leaders in recent weeks, highlighting growing “anxiety” and delayed capital spending decisions as companies weigh the impact of tariffs and other fiscal policy developments.

Despite the cautious near-term stance, Goolsbee reaffirmed his longer-term view that interest rates are likely to be lower 12 to 18 months from now.

While the Fed may not be in a rush to act immediately, he emphasized the importance of continued progress on inflation as a key condition for future easing.