Financial Wire

Federal Reserve Watch for April 14: Goolsbee Says High Oil Prices Could Delay Rate Cuts, Possibly Until 2027

-- Chicago Fed President Austan Goolsbee (nonvoter) said that high oil prices may require the FOMC to maintain its current policy rate through the remainer of 2026.

Recent comments of note:

(April 8) Minutes of the March 17-18 FOMC meeting showed a continued divergence of opinions on the path of policy, especially in light of the conflict with Iran, with most expecting a further rate cut at some point but others less certain.

(April 7) Fed Vice Chair Philip Jefferson (voter) said that rising energy prices clouds the outlook for inflation, which is already above the FOMC's target and appears to remain sticky. He added that monetary policy is well-positioned to wait for more information before considering changes in the policy rate.

(April 7) Chicago Fed President Austan Goolsbee (nonvoter) said that he is concerned about the inflation impact from the conflicted in Iran as well as the possibility that it will slow the economy.

(April 6) Cleveland Fed President Beth Hammack (voter) said that she believes the FOMC should hold rates steady for a period of time before considering rate reductions but added that the next move could be a rate hike if inflation remains elevated or moves higher.

(April 2) Dallas Fed President Lorie Logan (voter) said that the conflict in Iran adds uncertainty to the economic outlook but said that the current stance of monetary policy is positioned appropriately to react as needed.

(April 1) St. Louis Fed President Alberto Musalem (nonvoter) said that he could support rate decreases or rate increases depending on what conditions require but added that he believes that the current setting of policy will remain appropriate for some time.

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