Federal Reserve Goolsbee: Neutral interest rate expected to be around 3%, hope to find a point to stop rate cuts next year

Federal Reserve Goolsby said the state of the U.S. economy will determine the pace at which the central bank will cut interest rates going forward, but added that he hoped the central bank would be able to find a point to stop cutting rates by the end of next year. "I hope the situation continues to evolve so that we can get closer to the neutral policy range," Goolsby said. While he did not specify his estimate for the neutral rate, he said it was around 3 percent (well below the current rate of 4.5 percent to 4.75 percent, which is roughly equivalent to the median stop point that Fed officials predicted at their September meeting).