Goolsbee: Inflation Fight May Bring Economic Pain

Austan Goolsbee, president of the Federal Reserve Bank of Chicago, warned that fighting inflation may be 'painful' for the economy. In a speech in London on Monday, Goolsbee said the central bank is facing persistent supply shocks, including the Iran war and tariffs, which have driven up inflation.

Goolsbee's comments contradict Fed Chairman Kevin Warsh's previous statement after the Fed lifted its key interest rate for the first time in three years to about 3.9%. The increase aimed to combat high inflation rates, but Goolsbee emphasized that further action may be necessary to control inflation.