In an interview with CNBC on Tuesday, Bank of Chicago President Austan Goolsbee of the Federal Reserve (Fed) said that inflation in the services sector is “not benign” and added that there could potentially be several more rate cuts in 2026
Key takeaways:
Recent headline inflation has been reduced in part by the base effect.
Services inflation is ‘not benign’.
Goods with higher tariff content tended to see larger price increases.
As inflation resumes in 2026, there could potentially be “several more” interest rate cuts.
Consider an interest rate of 3% to be a “loose” estimate of the neutral level.
We need evidence that inflation will return to 2%, and then I think interest rates can continue to fall.
“I have known Chairman-designate Warsh for a long time and am a ‘huge fan’ of his work during the Great Financial Crisis.”
Today’s US dollar price
The table below shows the current percentage change of the United States Dollar (USD) against the major listed currencies. The US dollar was strongest against the British pound.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.29% | 0.80% | -0.05% | 0.26% | 0.40% | 0.17% | 0.30% | |
| EUR | -0.29% | 0.50% | -0.36% | -0.03% | 0.11% | -0.12% | 0.00% | |
| GBP | -0.80% | -0.50% | -0.85% | -0.53% | -0.39% | -0.62% | -0.49% | |
| JPY | 0.05% | 0.36% | 0.85% | 0.32% | 0.46% | 0.23% | 0.36% | |
| BOOR | -0.26% | 0.03% | 0.53% | -0.32% | 0.14% | -0.09% | 0.04% | |
| AUD | -0.40% | -0.11% | 0.39% | -0.46% | -0.14% | -0.23% | -0.10% | |
| NZD | -0.17% | 0.12% | 0.62% | -0.23% | 0.09% | 0.23% | 0.13% | |
| CHF | -0.30% | -0.01% | 0.49% | -0.36% | -0.04% | 0.10% | -0.13% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
