Goolsbee Flags Persistent Supply Shocks, Keeps 2% Inflation Target Conditional

Chicago Federal Reserve Bank President Austan Goolsbee recently spoke about the factors driving US inflation, stating that strong demand, tariffs, energy shocks, and supply disruptions are all contributing to price pressures.

Goolsbee emphasized that there is 'no ambiguity' about the Fed's response if demand continues to outstrip supply, implying a hawkish stance.

He also highlighted the persistent impact of supply shocks on inflation, noting that evidence of fading or manageable supply-driven inflation is necessary for achieving the 2% target.