Goolsbee Expresses Moderate Stance of the Federal Reserve Regarding Interest Rates

Senior Federal Reserve officials show a moderate stance in facing current inflation challenges. Goolsbee’s latest statement reflects that the U.S. central bank remains cautious, even as it leaves open the possibility of interest rate cuts in the future, depending on how inflation data evolves.

Service Sector Inflation Pressure Remains a Major Obstacle

According to recent analysis, inflation pressures in services are still difficult to contain, indicating concerning resilience. Additionally, commodities affected by tariffs are experiencing sharper price increases compared to other sectors. This situation is a primary reason why the Federal Reserve maintains a moderate approach and is not rushing to ease policy. Elevated inflation data remains a key reference in all monetary decisions.

Neutral Interest Rate of 3% Opens Hope for Gradual Cuts

Goolsbee indicated that if inflation continues to show a consistent downward trend, the Federal Reserve may implement several gradual interest rate cuts. The set neutral rate target of 3% reflects room for further easing. However, the Fed’s moderate stance ensures that each step will be supported by sufficiently strong and reliable data evidence.

Policy Negotiations Still Ongoing with Caution

Goolsbee emphasized that in the short term, reaching a comprehensive policy agreement is difficult, even though dialogue channels remain open. The Federal Reserve needs more solid empirical evidence to ensure inflation gradually returns to the 2% target. This dovish yet moderate monetary policy orientation reflects a balance between supporting economic recovery and maintaining long-term price stability.

Crypto Market Data Reflects Sentiment Toward the Fed’s Moderate Stance

Cryptocurrency prices reacted to the Federal Reserve’s more dovish policy signals:

• ETH (Ethereum): 1,979.67 USDT, down 4.01%
• DOGE (Dogecoin): 0.09628 USDT, down 2.42%
• BNB (Binance Coin): 618.5 USDT, down 1.17%

Although there is short-term negative pressure, the Fed’s moderate stance, which leaves room for rate cuts based on inflation data, is expected to be a positive catalyst for the market in the medium term.