Goolsbee: Demand-driven inflation would require a more aggressive Fed response
SPY•Goolsbee says demand-driven inflation would mean a more aggressive rate response
WASHINGTON, Sept. 21 (Reuters) - If U.S. inflation proves more driven by demand it will require a more aggressive campaign of interest rate hikes by the Federal Reserve, Chicago Fed President Austan Goolsbee said on Monday, in comments that highlight what he regards as an emerging concern for U.S. policymakers.
"If the through line is that it's coming from overheating demand, I think the implication is the rate response is more aggressive and more and more front-loaded," Goolsbee said in comments to reporters following an event in London. In recent data and in conversations with business contacts "we've been getting a little more sense ... that some of it maybe is coming from overheating demand," from ongoing services sector inflation and the continued artificial intelligence investment boom.
