Chicago Federal Reserve Bank president Austan Goolsbee said Friday in a CNBC interview that inflation has been coming down and that is what everyone should be watching to determine the Fed's interest rate path.
The official also noted that he doesn't want to pre-commit to rate reductions but added that if the Fed continues to make surprising progress on inflation then it has to take that into account in determining the level of restrictiveness. However, Goolsbee warned that rate hikes could be warranted if progress on inflation reverses.