Fed's Goolsbee: expects neutral rate to be around 3% level, hopes to find point to stop rate cuts next year

Fed Goolsbee said the U.S. economic situation will determine the Fed's future rate of interest rate cuts, but he added that he hoped the Fed would be able to find a point to stop cutting rates by the end of next year. Goolsbee said, ‘I hope that things continue to evolve so that we can get closer to the range of neutral policy.’ While he didn't specify his estimate of the neutral rate, he said it's around 3 per cent (well below the current rate of 4.5 to 4.75 per cent, and roughly equivalent to the median stopping point predicted by Fed officials at their September meeting).