Fed's Goolsbee Signals Potential Rate Cuts

(Reuters) – Federal Reserve Bank of Chicago President Austan Goolsbee on Friday indicated that he believes the U.S. central bank is likely to cut the policy rate by another quarter percentage point this year, and a full percentage point next year, in line with Fed policymakers' projections from September.

"I think we are going to be looking at rates coming down over the next year along the line the dot-plot said," Goolsbee told Bloomberg TV, referring to the Federal Reserve's projections released in September that show the rate-path forecasts of the Fed's 19 policymakers as dots on a chart.

The median outlook from that dot plot suggested that the Fed policy rate would end this year at 4.4%, a quarter percentage point lower than its current level, and drop to 3.4% by the end of next year.