Chicago Federal Reserve President Austan Goolsbee expressed optimism on Tuesday that a “golden path” to combat inflation without causing a recession is a real possibility.
In an interview on CNBC’s “Squawk Box,” Goolsbee emphasized the potential for a soft landing as the central bank works to bring down inflation without significantly harming the economy.
The Federal Reserve opted to keep interest rates steady at its last meeting, marking the second consecutive gathering in which the Federal Open Market Committee chose to hold rates after 11 consecutive hikes.
Despite core inflation currently running at 3.7% on an annual basis, well above the Fed’s 2% target, Goolsbee highlighted the significant progress made in reducing price pressures.
With the economy showing resilience, Goolsbee acknowledged the challenges of achieving a “golden path” in the face of historic inflation levels, emphasizing the need to carefully manage the situation.
Looking ahead, the central bank will take a data-dependent approach, consistent with Chair Jerome Powell’s recent comments that no decisions have been made yet for the upcoming December meeting.
Goolsbee’s remarks come as the economy continues to perform well, with Gross Domestic Product expanding at a 4.9% annualized rate in the third quarter, surpassing expectations.
The Fed President’s optimism about a soft landing in the face of inflationary pressures represents a notable viewpoint amid ongoing concerns about the impact of rising prices on the economy.