Fed Officials Add to Chorus Pushing Back Against Rate-Cut Bets
- Chicago Fed President Goolsbee surprised by market reaction
- Mester, Daly suggest talk of rate cuts in early 2024 premature
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Three more Federal Reserve officials pushed back against the depth of interest-rate cuts expected by markets next year, reinforcing similar comments from other US central bank officials last week.
Chicago Fed President Austan Goolsbee said he was surprised by the outsize market reaction to the Fed’s updated quarterly economic projections last week. Those new forecasts signaled that the Fed’s next move is likely a cut, leading to a rally in asset prices and bets of as many as six cuts starting as early as March.