Fed’s Goolsbee warns hot CPI unacceptable as services inflation bites
The Chicago Fed President, Austan Goolsbee, said that “CPI data was discouraging,” adding that services inflation in the CPI “was a concern,” in an interview with Yahoo! Finance.
Chicago Fed Chair Austan Goolsbee expressed disappointment in the recently released CPI data, highlighting concerns over service sector inflation within the CPI. He stated that he is gathering information on rising costs and prices from his contacts, and there are no indications of an impending recession. Goolsbee emphasized that the economy "has work to do on the inflation side," and that further negative inflation data would be unacceptable.
He reiterated the Federal Reserve's commitment to bringing inflation back to the 2% target. Goolsbee advises focusing on the overall trend of inflation rather than any single report. He also expressed cautious optimism regarding the outlook compared to other Fed officials, while urging close monitoring of the service sector inflation.
Goolsbee cautioned against prematurely telegraphing Fed policy decisions ahead of meetings. Lastly, he stressed the importance of preventing the buildup of overheating in the economy and maintaining price stability while fostering full employment, which are the Fed's two key mandates.
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