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Chicago Federal Reserve Bank President Goolsbee Says 'Uncomfortable' Front-Loading Rate Cuts, Urges Patience

BY MT Newswires | ECONOMIC | 09:08 AM EST

09:08 AM EST, 12/12/2025 (MT Newswires) -- Chicago Fed President Austan Goolsbee said Friday in an exclusive interview with CNBC that he dissented at the Federal Open Market Committee meeting this week in favor of no rate change because he is "uncomfortable" front loading too many rate cuts and urged patience to assure that inflation is back on a path to 2%.

Goolsbee said that the unemployment rate has been fairly stable and that there is only a low risk that the job market will fall apart overnight.

At the same time, though, there were "disturbing" inflation data released before the government shutdown cut off the flow of government data that suggested a lack of progress toward the inflation goal, Goolsbee said.

As a result, it would make sense to wait for more government data before taking action, he added.

Goolsbee next votes on the FOMC in 2027.

The other dissenter in favor of no rate reduction at the meeting this week was Kansas City Fed President Jeffrey Schmid, who said in a statement Friday morning that he still sees inflation as elevated along with signs that the economy is not being restrained by the current level of interest rates. Schmid next votes on the FOMC in 2028.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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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.

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