Goolsbee Warns of Aggressive Rate Hikes Amid Demand-Driven Inflation Concern

Chicago Fed President Austan Goolsbee emphasized that US policymakers are closely monitoring inflation trends. According to recent data and conversations with business contacts, it appears some of the inflation may be driven by overheating demand.

Goolsbee highlighted the importance of understanding the underlying causes of inflation, stating that if the through line is coming from overheating demand, a more aggressive campaign of interest rate hikes would be necessary.

He noted that if this is indeed the case, the Federal Reserve's response would need to be more front-loaded and aggressive. Goolsbee made these comments following an event in London, where he discussed recent economic trends with reporters.