Austan Goolsbee on Balancing Price Stability in Uncertain Times

The US economy continues to face an uncertain outlook due to inflation risks, evolving financial conditions, and heightened global uncertainty. Austan Goolsbee, president and CEO of the Federal Reserve Bank of Chicago, discussed these challenges in a recent conversation with OMFIF. He emphasized that policy-makers must balance maintaining price stability while supporting economic growth.

Goolsbee noted that monetary policy decisions will be taken meeting by meeting, as expressed by ECB President Christine Lagarde. This approach contrasts with forward guidance, which has been criticized for providing too much information. Fed Chair Kevin Warsh explicitly rejected forward guidance in the past.