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Fed's Goolsbee says he is wary of frontloading rate cuts

BY Reuters | ECONOMIC | 09/25/25 08:46 AM EDT

Sept 25 (Reuters) - Federal Reserve Bank of Chicago President Austan Goolsbee on Thursday said that while he supported last week's interest-rate cut because the labor market is cooling, he was not eager to do a lot more policy easing while inflation is above target and moving the wrong way.

"If we get data that should show we're on the path to maintain stable full employment and inflation is likely to be coming back down to 2%, I think rates can go down a fair bit more from where they are even now," Goolsbee said at an event in Grand Rapids, Michigan. "But I'm just a little uneasy with too much front loading until we're sure that's happening." (Reporting by Ann Saphir Editing by Bernadette Baum)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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