Many more rate cuts in the coming year

Chicago Federal Reserve Bank (Fed) President Austan Goolsbee participates in a discussion on the economic outlook and monetary policy at the annual National Association of State Treasurers Conference in Chicago.

Key recommendations

“A lot more rate cuts are probably needed over the next year, rates need to come down significantly.”

“I’m comfortable with the Fed’s 50bps rate cut, it shows that the Fed is focusing on risks to employment, not just inflation.”

“Keeping rates at a decade high doesn’t make sense when you want things to stay where they are.”

“The unemployment rate is at levels that many consider full employment.”

“The deterioration of the labor market is usually rapid.”

Market reaction

The US Dollar (USD) is extending its intraday decline on the news, with the US Dollar Index now hovering around 100.90.