Chicago Fed President says there are multiple opportunities for rate cuts within the year, provided that inflation falls back to target levels.

Chicago Federal Reserve Bank President Austan Goolsbee said on Monday that there is potential for more rate cuts this year if inflation continues to fall back towards the central bank's 2% target. Goolsbee pointed out that service sector inflation remains high, but if the price increases related to tariffs are one-time occurrences, then policymakers have room to act. "I really think that if this situation proves to be temporary and we can demonstrate that we are on the path towards returning to a 2% inflation rate, then I believe there will be more rate cuts in 2026, but we have to wait and see," Goolsbee said in an interview with CNBC. The Federal Reserve held rates steady last month after three consecutive rate cuts in the last few months of 2025 to boost a sluggish job market. "I hope to see some evidence that we are falling back towards 2%, and then I believe rates can continue to decline," Goolsbee said.