Federal Reserve member Goolsbee expresses his objection to the decision to cut interest rates and states: waiting was the best option
Published 12/12/2025, 18:13
© Reuters Federal Reserve member Goolsbee expresses his objection to the decision to cut interest rates and states: waiting was the best option
Arabictrader.com - Austin Goolsbee, a member of the U.S. Federal Reserve from Chicago, said on Friday that waiting before cutting interest rates at the last meeting would have provided the advantage of benefiting from updated economic data, noting that most data shows stable economic growth, while the labor market is only cooling moderately.
In this regard, Goolsbee opposed the rate cut decision because he believes the Federal Reserve should wait for more information, especially regarding inflation.
A member of the U.S. Federal Reserve addressed the following points:
There is no strong indication that the labor market is deteriorating rapidly enough for the U.S. Federal Reserve to be unable to wait until early 2026 to cut rates again.
The current rise in inflation may be due to tariffs and could be temporary, but the risk lies in it turning into long-term inflation.
Inflation has remained above the U.S. Federal Reserve's target for four and a half years, and progress in reducing it has stalled, while companies and consumers point to prices as one of the main sources of concern.
Waiting would have been the wisest option, without involving significant additional risks.
Most data shows stable economic growth, and the labor market is only cooling moderately.
There is still optimism regarding the possibility of the U.S. Federal Reserve significantly lowering interest rates over the next year, but there are concerns about rushing the cut given inflation in recent years.
