Fed’s Goolsbee optimistic on inflation improvement

In a CNBC interview today, Chicago Fed President Austan Goolsbee expressed cautious optimism about inflation in the US, describing himself as “closet optimistic” that there will be improvement on the inflation front.

Goolsbee refrained from commenting on the timing of rate cuts but emphasized the need for policymakers to consider whether the current high level of interest rates is appropriate for an economy showing signs of cooling beyond just inflation metrics.

He noted that factors such as rising unemployment claims, slightly increasing unemployment rate, and other indicators returning to pre-pandemic levels should prompt Fed to think more about balancing its dual mandates of controlling inflation and maintaining employment.