Fed’s Goolsbee Opens Door to September Rate Cut if Inflation Cools

Federal Reserve Governor Austan Goolsbee said the central bank could begin cutting interest rates as soon as its September meeting—or later in the fall—provided forthcoming data show that inflation is no longer accelerating. Goolsbee’s comments add to expectations that policymakers may pivot if price pressures continue to subside. Historically, the Fed’s preferred inflation gauge has been clearly trending lower when rate reductions start, and analysts will scrutinize upcoming personal consumption-expenditures reports for confirmation.