Fed Official Warns Fighting Inflation May Require Economic Pain

Austan Goolsbee, president of the Federal Reserve Bank of Chicago, warned that fighting high inflation may require causing economic pain in the form of higher unemployment.

Speaking in London, Goolsbee noted that the central bank is facing persistent supply shocks, including higher oil prices from the Iran war and tariffs. Typically, he said, the Fed would wait for such shocks to fade before acting, rather than raising borrowing costs.

Goolsbee did not specify a timeline or target for reducing inflation, but emphasized that the process may be 'painful' for some individuals and businesses.