Key facts
- Chicago Federal Reserve President Austan Goolsbee said core inflation pressures are still too high.
- Goolsbee noted that inflation is trending in the wrong direction.
- He acknowledged a "glimmer of hope" in the latest U.S. inflation report concerning services.
- Goolsbee declined to comment on specific future interest rate decisions.
- He stressed the importance of determining if temporary factors are solely responsible for inflation increases.
Chicago Federal Reserve President Austan Goolsbee stated on Thursday that while the latest U.S. inflation report offered a "glimmer of hope" regarding services inflation, underlying inflation pressures are still too high and moving in the wrong direction. In an interview with CNBC, Goolsbee refrained from commenting on whether the Federal Reserve should raise interest rates or maintain current levels. He expressed agreement with Fed Chairman Kevin Warsh's approach to avoid fueling speculation about the future trajectory of interest rates. Goolsbee also highlighted the critical need for the Fed to assess whether temporary shocks, such as tariffs or energy price surges stemming from conflicts like the war in Iran, are the sole drivers of current inflation.