Federal Reserve Goolsby: Interest rates will continue to decline

Federal Reserve Goolsby said he expects the central bank to continue cutting interest rates for the purpose of neither restricting nor boosting economic activity. "Unless there is compelling evidence that the economy is overheating, I see no reason not to continue cutting the federal funds rate," Goolsby 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 rates, closer to the neutral rate." He said his forecast for the neutral rate was close to the officials' median estimate, which was 2.9 percent in September. Goolsby said the overall picture in recent months has been that inflation has often been lower than expected, but not much higher than the 2 percent target.