Federal Reserve Bank of Chicago President Austan Goolsbee hinted at potential multiple rate cuts in 2026 if inflation trends toward the 2% target, per Tuesday remarks. Speaking to CNBC, he dismissed recent weak CPI data as partially inflated by base effects, stressing services inflation remains elevated. Goolsbee reiterated the Fed’s data-dependent approach, stating, "We’ve got to see it [lower inflation] in upcoming reports." He also noted higher tariffs drove sharper price hikes in goods, calling a 3% policy rate a "loose" estimate of the neutral rate.

The comments follow market speculation about easing monetary policy amid cooling headline inflation.##.