Federal Reserve Goolsbee said he expects the Fed to continue to cut interest rates in a way that neither restricts nor promotes economic activity. ‘Unless there is compelling evidence that the economy is overheating, I see no reason not to continue to lower the federal funds rate,’ Goolsbee 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 median estimate of officials, which was 2.9 per cent in September's forecast. Goolsbee said the overall picture in recent months has been one of inflation that has often been lower than expected, but not much above the 2 per cent target.