Particle.news
Download on the App Store
3 ARTICLES
·
yesterday

Fed Officials Diverge After Delayed CPI, With Williams Cautious and Goolsbee Open to Cuts

Markets lean toward a January hold given questions over a shutdown-disrupted inflation reading.

Chicago Federal Reserve President Austan Goolsbee speaks to the Economic Club of New York in New York City, U.S., April 10, 2025. REUTERS/Brendan McDermid/File Photo
Image
New York Fed President John Williams says the US government shutdown in the fall has distorted some recent economic data

Overview

  • New York Fed President John Williams said there is no urgency to cut rates further and suggested shutdown-related data gaps likely pushed November’s CPI lower by about a tenth.
  • Williams also flagged heavier Black Friday sampling as a source of downward bias, adding that December data should clarify the extent of any distortion.
  • Chicago Fed President Austan Goolsbee called the CPI a good month and said sustained progress toward 2% inflation could open the door to additional easing next year.
  • Goolsbee, who dissented against the Dec. 10 rate cut, argued the Fed should have waited for more inflation data before lowering the policy rate again.
  • The delayed CPI showed prices up 0.2% over September–November and 2.7% year over year, and CME FedWatch points to roughly an 80% chance of no change at the late-January meeting.