Fed Official Warns Inflation Fight May Bring Economic Pain

Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said in a speech in London that the Fed may have to cause economic pain through higher unemployment to combat high inflation.

Goolsbee stated that the central bank is facing persistent supply shocks that have driven up inflation. He noted that this situation will be 'painful' and that the Fed may need to make difficult decisions to control inflation.

Goolsbee emphasized that the goal of the Fed is to bring down inflation, but he acknowledged that this process can be challenging and may involve some economic pain. The exact measures the Fed will take have not been specified.