Speaking on Fox News’ "The Journal Editorial Report," Goolsbee emphasized that the Fed requires further assurance that price pressures are returning toward the 2% target before easing policy, as first reported by Reuters.
The remarks follow data showing the Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred gauge, climbing at a 3.5% annual rate in March.
Goolsbee highlighted that inflation is now emerging even in service sectors typically shielded from external shocks such as tariffs.
He noted that the current composition of inflation "doesn’t look good," particularly as rising oil prices and geopolitical tensions involving Iran exacerbate existing risks.
Divided Fed navigates leadership transition and policy path
Goolsbee’s hawkish tone aligns with a central bank currently experiencing its most significant internal divide in decades. At last week’s meeting, the Fed held the policy rate steady in the 3.5% to 3.75% range, but the 8-4 vote marked the most fractured decision since 1992.
The Fed split was fueled by disagreements over "forward guidance," with several officials opposing language that suggested the next move would likely be a rate cut.
The policy uncertainty comes as the Fed prepares for a leadership change, with Kevin Warsh awaiting Senate confirmation to succeed Jerome Powell as Chair.
source https://www.investing.com/news/economy-news/feds-goolsbee-labels-recent-inflation-data-bad-news-urges-caution-4654794
