Fed's Goolsbee: Rates will continue to fall

Fed's Goolsbee said he expects the Fed to continue cutting interest rates to achieve a goal of neither restricting nor boosting economic activity. "Unless there is compelling evidence that the economy is overheating, I see no reason not to continue lowering the federal funds rate," Goolsbee said. "The pace of rate cuts depends on the outlook and conditions. But it seems to me that we are on a clear path that will lead to lower interest rates and closer to the neutral rate." He said his forecast for the neutral rate is close to the median estimate of officials, which was 2.9% predicted in September. Goolsbee said the overall situation in recent months has been that inflation has often been lower than expected, but not far above the 2% target.