Chicago Fed President Goolsbee: Several more rate cuts possible if inflation proves to be transitory

• Headline inflation drop partly due to a 'bad' report from 12 months ago falling out of the 12-month moving average.
• Services inflation remains untamed, and core inflation is around a 3.6% annual rate.
• 'Several more rate cuts' are possible in 2026 if inflation consistently returns to 2%.
• Tariffs have shown a clear relationship with higher goods inflation, but Goolsbee hopes this is transitory.

Chicago Fed President Austan Goolsbee analyzed the latest inflation report, noting some progress but highlighting concerns about services inflation. He stated that "several more rate cuts" are possible in 2026 if inflation proves transitory and returns to the 2% target, while also touching on the impact of tariffs and the nomination of Kevin Warsh.