Goolsbee: Fed May Need Painful Anti-Inflation Measures

Austan Goolsbee, president of the Federal Reserve Bank of Chicago, believes that fighting inflation may require causing economic pain through higher unemployment.

Goolsbee made this statement in a speech in London on Monday, citing persistent supply shocks as the main driver of high inflation.

The central bank is facing challenges due to higher oil prices resulting from the Iran war and tariffs. Typically, the Fed would wait for such shocks to fade and allow inflation to fall on its own rather than raising borrowing costs.