Chicago Fed President Austan Goolsbee joins WSJ’s Take On the Week to discuss the economy, inflation, tariffs and AI. Goolsbee shares the Federal Reserve's approach to monetary policy and a "golden path" where stable full employment and decreasing inflation would allow for interest rate cuts.

The case for a U.S. interest rate cut remains unresolved as Federal Reserve officials head into their policy meeting later this month, with data showing fresh signs of higher inflation and President Donald Trump intensifying his demands for lower borrowing costs.

Federal Reserve Gov. Christopher Waller on Thursday called for the central bank to cut interest rates in July. Waller said

Some officials want a July cut to protect the labor market, while others want to wait because they anticipate more inflation coming.

The Indian rupee fell on Wednesday as the latest U.S. inflation report showed that tariffs were beginning to feed into prices, weakening bets on rate cuts by the Federal Reserve, which lifted U.S. Treasury yields and the dollar.

With June's inflation reading coming in hotter than the month prior, the Fed is under renewed pressure to maintain its current target range for the federal funds rate. Analysts now see little chance of a rate cut in the near term. That means HELOC borrowers are unlikely to see significant rate drops anytime soon.