Fed's Goolsbee makes case for lower interest rates

foxbusiness.com:

Chicago Federal Reserve Bank President Austan Goolsbee opens up about the impact of the Federal Reserves moves on The Claman Countdown.

Chicago Federal Reserve Bank President Austan Goolsbee said on Monday that the Fed's interest rate-cutting campaign has a ways to go before reaching a «neutral» rate and that the central bank should continue to cut to reach that rate so long as the economy does not show signs of overheating.

Goolsbee, who in January will become a voting member of the Federal Open Market Committee (FOMC) that makes monetary policy decisions, said in an appearance on FOX Business Network's "The Claman Countdown" that policymakers are likely to continue with rate cuts until the neutral rate is reached, but the path may slow if the economy accelerates.

«Barring some sign of actual overheating of the economy, I still feel comfortable saying that if you look at the broad dot plot, rates have a fair way to go down before they get to something like neutral,» Goolsbee told host Liz Claman during Monday's interview. 

«If you've got inflation coming toward the 2% target, and you've got unemployment rising, but getting to something like sustainable full employment, you better be careful adding cold water to the bathtub if you've got the temperature about where you want,» Goolsbee said.

FED CHAIR JEROME POWELL SAYS CENTRAL BANK IN NO RUSH TO REACH 'NEUTRAL RATE'

Chicago Federal Reserve President Austan Goolsbee said he believes interest rates are «well above» the neutral rate and have room to come down further depending on economic conditions. (Vincent Alban/Bloomberg via Getty Images / Getty Images)

His remarks come after Fed Chair Jerome Powell said earlier this month that the central bank is not rushing to cut