Fed's Goolsbee says prolonged high inflation is 'playing with fire'
TLT•Chicago Fed President Austan Goolsbee said allowing inflation to stay above the Fed's target for 5-1/2 years is “playing with fire.” He said the Fed may need to respond to persistent supply shocks and needs evidence inflation is declining before cutting rates.
1. Goolsbee on inflation
Goolsbee said the Fed may need to respond to supply shocks with long-lasting effects, calling the situation “unpleasant.” He said that before cutting rates, policymakers need evidence that inflation is coming down and that temporary factors are going away.
