In his interview with CNBC, Chicago Federal Reserve Bank president Austan Goolsbee noted that he was a bit confused by the markets' reaction to the Federal Reserve's latest decision and suggested that there seems to be confusion in markets on how the central bank works.
The official said that inflation data should drive decision-making, and the Fed has seen significant improvement in inflation though it still has not hit the 2% target. He also acknowledged that improvements are being made in labour force participation.
Furthermore, Goolsbee clarified that the Fed's rate-setters do not debate specific policies for the future but rather vote on rates. He added that the Fed does not choose its actions based on how markets will react.
In addition, the boss of the Chicago Fed pointed out that market expectations for the Fed rate cuts are greater than the September projection, but added he does not want to get into the heads of market participants.