Federal Reserve Bank of Chicago President Austan Goolsbee said the US central bank should exercise “prudence and patience” in raising interest rates as policymakers assess just how much last month’s banking turmoil will contribute to tighter lending conditions.
“Given how uncertainty abounds about where these financial headwinds are going, I think we need to be cautious,” Goolsbee said Tuesday in prepared remarks for an Economic Club of Chicago event. “We should gather further data and be careful about raising rates too aggressively until we see how much work the headwinds are doing for us in getting down inflation.”
