Fed Officials Advocate for Patience on Interest Rate Cuts

August 14, 2025 - 12:31

Two Federal Reserve officials expressed their belief on Wednesday that the central bank should exercise patience before making any decisions to lower interest rates. This sentiment comes as financial markets anticipate a rate cut in September, which many analysts view as almost inevitable.

Chicago Fed President Austan Goolsbee and Atlanta Fed President Raphael Bostic emphasized the importance of carefully assessing economic data and trends before taking action. They highlighted that while there are pressures for a rate reduction, it is crucial to ensure that the economy remains on a stable path.

The officials' comments reflect a cautious approach amid ongoing discussions about inflation and economic growth. With inflation showing signs of moderation, the Fed is weighing its options, balancing the need to support economic activity against the risk of reigniting inflation. As the September meeting approaches, the focus will remain on economic indicators that could influence the committee's decision-making process.