Chicago Federal Reserve (Fed) President Austan Goolsbee stated that he expects the Fed to begin lowering interest rates later this year as inflation cools off. The head of the Chicago Fed gave his outlook on the Fed's rate stance during an interview with Fox News on Friday.

Chicago President Goolsbee's comments were the last scheduled speaking engagement from Fed officials before the US central bank enters the media blackout period before the March 19-20 policy meeting.

Key highlights

The Fed remains focused on inflation, not price levels.

It is unrealistic to expect price levels to return to pre-COVID levels immediately.

Higher rates have definitely contributed to housing costs.

Fed's Goolsbee expects rates to come down as inflation falls this year.