Goolsbee: US Inflation Data Shows Slight Improvement, Returns to Golden Path Possible

Chicago Federal Reserve Bank President Austan Goolsbee said Thursday that recent US inflation data has been 'a little better'. He expressed hope that as the effects of tariffs and higher oil prices fade, inflation will continue to improve. Goolsbee mentioned the golden path, which is inflation returning to 2%, a target for the Federal Reserve.

The Fed last month left interest rates in the 3.50%-3.75% range, but at least five policymakers voted to raise rates. The central bank targets 2% inflation using the personal consumption expenditures price index. In June, PCE inflation was 3.7%, down from its recent peak of 4.1% in May.

Goolsbee noted that inflation has been too high and progress had stalled. However, with recent readings showing improvement, he is hopeful for a continuation of this trend. The economy feels stable overall, but the focus remains on inflation.