Goolsbee says rate hike would not reverse 2025 cuts
The remark follows the Federal Reserve's first rate hike since 2023.
Published
Chart: Fed target rate, top of the range
Federal Reserve president Austan Goolsbee said he does not see a rate hike as undoing the cuts made in 2025.
His comment comes after the Fed delivered its first rate hike since 2023. Fellow Fed official Schmid had backed that move, citing inflation running above 3%, even as he described the labor market as balanced.
Markets are still trying to steady themselves after that hike, along with Aramco's halt of crude sales to Europe and diesel prices at $6.45 a gallon.
Goolsbee's framing offers modest pushback against anxiety over further tightening, but it does not change the underlying picture. Inflation remains above target, the Fed's own projections point to another hike this year, and traders are already pricing in high odds of an October move. His statement reads as a calibration, not a pivot.