Fed's Goolsbee says both rate cuts and hikes are on the table

Investing.com -- Federal Reserve Bank of Chicago President Austan Goolsbee stated that all options regarding interest rates remain available to policymakers.

In an interview on Bloomberg Television Friday, Goolsbee said he cannot view the current situation as one where rate cuts are the only conceivable option on the table.

The Fed kept interest rates unchanged at its meeting at the end of April. Three officials dissented against statement language suggesting the central bank's next move would likely be a rate cut, preferring instead to signal the next action could be either a cut or a hike.

Goolsbee's remarks reflect a broader shift among Fed policymakers away from considering a rate reduction in the near term. This change is largely driven by inflation concerns stemming from an energy-price shock triggered by the US war in Iran.

While Goolsbee does not vote on monetary policy this year, he confirmed Friday that he believes both rate cuts and hikes are options for him and his colleagues. He also stated he is anxious about inflation and sees price pressures extending beyond the energy shock.

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