Federal member Julesby: It makes sense to slow the pace of interest rate cuts.

During his talk on Thursday, Federal Reserve Bank of Chicago member Austin Goolsbee discussed the recent conditions of the American economy and the potential movements of the Federal Open Market Committee regarding monetary policy and the pace of federal interest rate cuts. Goolsbee's comments were as follows:

• Inflation seems to be on a sustainable path to the Federal Reserve's 2% target.
• It may make sense to slow down the pace of federal interest rate cuts.
• The U.S. labor market is close to stable full employment despite recent negative data.
• Prices are expected to decrease somewhat over the next year compared to where they are today.
• It may make sense to slow the pace of interest rate cuts as the Federal Reserve approaches price stability and reaches the neutral interest rate.
• It is good for inflation that the U.S. economy is not experiencing full employment.
• I see that the neutral interest rate is still quite far away, and it is certainly lower than current interest rates.
• I expect that the Federal Reserve may reach the neutral rate within a period of 12 to 18 months.