Chicago Fed President: Further Rate Cuts Likely If Inflation Improves; CPI-Earns 2.5% in January

Chicago Fed President Austan Goolsbee said further Federal Reserve rate cuts are possible only if inflation continues to move toward the 2% target, pending stability in the labor market. He emphasized the need for real inflation improvement rather than assumption, noting January core CPI-E rose 2.5% and services price pressures remain elevated and persistent, potentially关税-driven but still a concern. With the 1% Jan CPI-up, inflation is still more than 4.5% above target. While investors see a 90% chance the Fed will keep rates at the March 18 meeting, Goolsbee indicated further easing may follow as inflation trends closer to 2%.