Fed's Goolsbee, on CNBC, says Fed has room to cut rates

NEW YORK, Sept 23 (Reuters) - Federal Reserve Bank of Chicago President Austan Goolsbee said Tuesday if inflation cools off the central bank has some space to cut its interest rate target.

“I think eventually, at a gradual pace, rates can come down a fair amount if we can get this stagflationary dust out of the air,” Goolsbee said in an interview with CNBC. In terms of where the Fed can go versus its current target rate range of between 4% to 4.25%, Goolsbee said a neutral rate is something like 100 to 125 basis points lower than that, noting “ultimately the rate might settle around 3% with inflation at 2% and I'm comfortable with that, with that as a marker.”