Chicago Fed Pres. Goolsbee is speaking and says:
- Nothing in Federal Reserve act says the Fed should make the stock and Pres. happy.
- If actively talking about taking away the independence of the Fed, that is a bad idea.
- Inflation could come roaring back.
- Oil prices rising is a stagflationary shock.
- Fed is now in an uncomfortable situation, no obvious cookbook for Fed.
- My immediate concern is stagflationary shock of oil prices before the tariff–price shop has gone away.
- Job market stable but not great.
- Cautious, nervous about economy.
- The longer you go with high inflation, the more it gets ingrained into the economy
Chicago Fed President Goolsbee leaned slightly hawkish, stressing the importance of Fed independence and warning that inflation risks remain elevated. He cautioned that inflation could “come roaring back,” particularly with rising oil prices posing a stagflationary shock, and emphasized the danger of inflation becoming entrenched if it persists too long. Overall, his comments highlight a continued focus on price stability despite economic uncertainty
This article was written by Greg Michalowski at investinglive.com.
