Key facts
- Chicago Fed President Austan Goolsbee indicated core inflation is too high and trending negatively.
- Goolsbee saw a "glimmer of hope" in services inflation but emphasized underlying pressures remain elevated.
- New York Fed President John Williams stated inflation is still too high and above the 2% target.
- Williams expects inflation pressures to moderate but delayed the return to the 2% target.
- Both officials declined to speculate on future interest rate decisions.
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, are the sole drivers of current inflation.