Federal Reserve Bank of Chicago President Austan Goolsbee suggests interest rate cuts are possible if inflation cools off, with a neutral rate potentially settling around 3%. Goolsbee, a voting member of the Federal Open Market Committee, acknowledges inflation risks but also highlights concerns about the job market and the need to lower short-term borrowing costs. The Chicago Fed’s real-time unemployment report projected a steady unemployment rate of 4.3% in September. Goolsbee believes the current Fed policy is mildly restrictive, emphasizing the importance of balancing inflation and job market risks in determining interest rate adjustments.

Read more at Yahoo Finance: Fed’s Goolsbee, on CNBC, says Fed has room to cut rates