Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee participates in a fireside chat about the economic outlook and monetary policy at the National Association of State Treasurers Annual Conference in Chicago.

Key takeaways

“Many more rate cuts are likely needed over the next year, rates need to come down significantly.”

“I am comfortable with the Fed's 50 bps rate cut, it shows the Fed is focused on risks to employment, not just inflation.”

 “Keeping rates at decade-high does not make sense when you want things to stay where they are.”

“The jobless rate is at levels many consider as full employment.”

“Labor market deterioration typically happens quickly.”

Market reaction

The US Dollar (USD) extends its intraday slump following the news, with the US Dollar Index now hovering at around 100.90.