Fed’s Goolsbee sees ‘a lot’ of Fed cuts coming over the next year

There will be “a lot” of interest-rate cuts over the next year, if economic conditions continue as they are, said Chicago Fed President Austan Goolsbee on Monday.

He said whether the next move is 25 basis point or 50 basis point isn’t as important as “the long arc” of policy, Goolsbee said during a talk to a conference of the National Association of State Treasurers.

He said the Fed’s “dot plot” shows there is virtual unanimity about the future path of policy.

“Over the next 12 months, we have a long way to come down to get the interest rate to something like neutral,” Goolsbee said. The median Fed forecast puts neutral around 3%.