Chicago Federal Reserve President Austan Goolsbee stated on Monday that there remains room for further interest rate cuts this year if inflation continues to decline toward the Fed's 2% target, though future policy decisions will depend on additional data for confirmation. In an interview, Goolsbee noted that inflation in the services sector remains relatively high and is a key focus for policymakers. However, he also emphasized that if tariff-related price increases prove to be a one-time shock rather than a persistent inflationary pressure, it would leave room for monetary policy adjustments. "I do believe that if these effects ultimately turn out to be temporary and we can confirm that inflation is returning to the 2% path, there is still potential for several rate cuts in 2026," Goolsbee said. "But this is conditional on seeing the relevant evidence." Reflecting on recent policy developments, Goolsbee mentioned that Fed officials chose to hold interest rates steady at last month's policy meeting, following three consecutive rate cuts in the final months of 2025 in response to signs of a weakening labor market. He further stressed that future rate cuts will largely depend on inflation trends. "I need to see more evidence that we are steadily returning to the 2% inflation target," Goolsbee stated. "Once that is confirmed, I believe there is still room for further rate reductions." Market observers generally view Goolsbee's latest remarks as conveying a relatively dovish policy signal, indicating that the Fed remains open to further monetary easing as long as inflation does not pose a persistent threat.