Fed official Goolsbee warns against cutting interest rates based on productivity gains alone
Chicago Fed President Austan Goolsbee cautioned that the central bank should not rely on productivity growth to justify lower rates. He emphasized that inflation must show clear signs of cooling before any further policy easing occurs.
Austan Goolsbee, the President of the Federal Reserve Bank of Chicago, stated on Tuesday, February 24, 2026, that the Federal Reserve could resume cutting interest rates if inflation begins to fall. However, Goolsbee cautioned against basing such policy easing on expected productivity gains, warning that premature action could overheat the economy in the US 
US and keep inflation stubbornly above the central bank's 2% target.
US and keep inflation stubbornly above the central bank's 2% target.
