finance
Chicago Fed's Goolsbee Speaks on Latest Inflation Data and Monetary Policy
Chicago Federal Reserve President Austan Goolsbee described last week's inflation figures as bad news, urging caution on rate cuts until inflation recedes toward 2%. The Federal Reserve's recent 8-4 vote to hold rates was its most divided since 1992. Goolsbee noted rising inflation risks amid oil price increases and the U.S.-backed war with Iran.
May 2, 4:49 PM·1m read2 sources
FI
cnbc.comAudio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
U.S. Federal Reserve, noting ongoing debates about rate cuts as inflation shows mixed signals. 5% annual rate in March.
-backed war with Iran. Inflation pressures persist amid recent oil price increases. Goolsbee, who is not a voter on rate policy this year, dissented against a Fed rate cut in December due to those rising inflation risks.
75% range at its meeting last week on an 8-4 vote, the most divided since 1992. Three of the dissents were against language indicating the next move was most likely a rate cut. Goolsbee said the split decision showed potential complications in offering 'forward guidance' about the path of monetary policy, with three officials who supported the actual rate decision dissenting on the forward guidance language.
Goolsbee, who is president and CEO of the Federal Reserve Bank of Chicago, addressed the upcoming transition at the Fed. Jerome Powell decided to remain as a Fed governor after incoming Fed Chair Kevin Warsh is confirmed by the Senate in the coming weeks. Goolsbee said he is glad to have Powell's continued input and excited for Warsh's arrival.
