[Federal Reserve's Goolsbee: Don't Rush to Cut Rates Due to Productivity Growth] Jin10 Data reported on May 7 that Chicago Fed President Goolsbee warned against instinctively lowering interest rates due to accelerated productivity growth, as this phenomenon can sometimes drive inflation higher. In prepared remarks released ahead of a panel discussion at the Milken Institute Global Conference on Wednesday local time, Goolsbee stated that the Federal Reserve's response to accelerated productivity growth 'largely depends on whether the productivity growth is unexpected or anticipated in the future.' He noted that in the first scenario, inflation might be suppressed, allowing for rate cuts. In the latter scenario, additional investment and spending driven by productivity growth could push inflation higher, necessitating rate hikes. Furthermore, he emphasized the need to be cautious about consumption and investment driven by future growth expectations. 'The more intense the hype, the greater the need for rate hikes to prevent overheating,' he said.