There will be “a lot” of interest rate cuts over the next year if economic conditions remain as they are, Chicago Fed President Austan Goolsbee said Monday.
He said whether the next move is 25 or 50 basis points is not as important as “the long arc” of policy, Goolsbee said in a speech at a conference of the National Association of State Treasurers.
He said the Fed’s “dot plot” shows there is near unanimity on the future path of monetary policy.
“Over the next 12 months, we still have a long way to go to get the interest rate back to near neutral,” Goolsbee said. The Fed’s median forecast puts the neutral rate around 3%.
These forward-looking cuts would help keep economic conditions where they are, he added.
