Fed’s Goolsbee believes borrowing costs would be “a fair bit lower” in 12-18 months from now – FT

Chicago Federal Reserve (Fed) President Austan Goolsbee said in a Financial Times (FT) interview on Wednesday that he “believed borrowing costs would be “a fair bit lower” in 12-18 months from now.”

Additional comments

Market angst over inflation would be ‘red flag’.

If investor expectations begin to converge with those of american households, the fed would need to act.

Cautioned that it may take longer than anticipated for the next cut to come because of economic uncertainty.

‘Wait and see’ is the correct approach when you face uncertainty.