Federal Reserve Bank of Chicago President Austan Goolsbee told CNBC on Friday that the institution's policy has "nothing to do" with the results of the 2024 United States presidential election but with the economic environment.
Goolsbee once again stressed the importance of the incoming data, not only on inflation but jobs too, for future interest rate decisions. He stated that the Fed is not yet set on what the neutral rate should be, which should not stop it from reducing the benchmark one. The policymaker also noted the agency will not change the inflation target from 2%.
Furthermore, Goolsbee pointed out the possibility of long-term rates rising because of the expectations that economic growth could be higher.
