United States Federal Reserve Bank of Chicago President Austan Goolsbee said on Friday that inflation and unemployment rates will dictate the central bank's monetary policy in the future, which he predicted will loosen by a "judicious amount" in 2025.
Speaking to CNBC, Goolsbee insisted that inflation is still heading toward the target of 2% but warned that there is "more uncertainty noise." He noted that the labor market is stable and stressed the necessity of keeping it so by taking interest rates to "something like neutral," which is "still far" away.
Goolsbee reaffirmed the Fed's determination to process incoming data and economic projections before making new monetary policy decisions. He added that the agency will also have to "process" what the next administration of President-elect Donald Trump "does for inflation and employment."