Goolsbee Flags Elevated Inflation as Markets Anticipate July Rate Stability
Austan Goolsbee, President of the Federal Reserve Bank of Chicago, has expressed concerns about elevated inflation levels in the US economy. Speaking to CNBC on June 26, 2026, he emphasized that core inflation trends have yet to improve, which he views as the single greatest challenge currently.
Goolsbee also praised new Fed Chair Kevin Warsh's efforts to reform Federal Reserve communication, noting his support for streamlining communications and refraining from speculating on future interest rate paths. Markets are currently coalescing around a prevailing scenario: the Federal Reserve will likely hold rates steady in July and is more probable to enact a rate hike in September.
The CME FedWatch Tool assigns a nearly 70% probability to the Fed keeping interest rates unchanged at its July meeting, while looking out to September, market places a 36.6% probability on the Fed keeping rates at current levels.