Chicago Federal Reserve President Austan Goolsbee stated that the Federal Reserve needs to see clearer progress on inflation before considering rate cuts this year, noting that the Middle East conflict and resulting energy price increases represent a complicating factor in the near term. He emphasized that rate cuts would only be realistic once inflation resumes its downward trajectory and eventually reaches the 2% target. His comments reinforce the cautious tone among Federal Reserve officials, with Federal Reserve Governor Michael Barr also indicating that amid persistent price pressures, interest rates may need to remain stable "for some time."