Federal Reserve Bank of Chicago President Austan Goolsbee stated on Tuesday that interest rate cuts should be postponed until more evidence confirms inflation is declining. Given recent indicators showing that while inflation is significantly below its peak, it remains above the Fed's 2% target, Goolsbee noted that policymakers have previously been misled by assuming inflation was transitory and should avoid repeating that mistake. "In this situation, I believe it is unwise to implement significant rate cuts prematurely," he said during a speech at the National Association for Business Economics annual conference in Washington, D.C. "People consistently report that prices are one of their most pressing concerns. We should remain focused on this. Before considering further rate cuts to stimulate the economy, we must ensure inflation is convincingly returning to the 2% level." The latest December inflation data showed the core Personal Consumption Expenditures price index, the Fed's primary gauge which excludes volatile food and energy prices, at 3%. This figure increased by 0.2 percentage points from November, partly due to tariffs viewed as temporary, but also because of underlying pressures in service sectors and areas not directly affected by tariffs. Specifically, Goolsbee indicated that persistently high housing inflation is not driven by tariffs and emphasized that the Fed needs to stay "vigilant." Goolsbee pointed out that a 3% inflation rate is "not good enough—it is not the level consistent with the Fed's commitment to a 2% target. For reasons that are all too familiar, stalling at 3% is not a safe place." He had previously suggested he believes the Fed will be able to cut rates later this year. Goolsbee's comments come as markets expect the Federal Open Market Committee, of which Goolsbee is a voting member this year, to maintain current interest rates at least until June, and potentially until July. According to the CME Group's FedWatch tool, traders in financial instruments assign approximately a 50% probability of a rate cut in June and about a 71% probability in July. The Fed implemented three 25-basis-point rate cuts in the second half of 2025. Fed Governor Christopher Waller, who has generally advocated for rate cuts, also spoke at the National Association for Business Economics conference on Monday, striking a more cautious tone. Although Waller stated he believes policymakers should "look through" the impact of tariffs, he noted that recent data suggests labor market conditions might be stronger than previously indicated, reducing the immediate need for further rate cuts. Continued improvement in employment figures would further weaken the case for easing policy, though he conceded he does not view January's nonfarm payrolls data as being "more noise than signal." Tuesday is set to be an active day for Fed speakers, with Governor Lisa Cook also scheduled to address the National Association for Business Economics later in the morning.