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Goolsbee says June CPI looked benign, warns against single-month focus

The Chicago Fed president said services inflation remains too high, while pointing to the latest services reading as encouraging and urging several months of similar data.

Reported · Written up by our desk · Central Banks

Federal Reserve Bank of Chicago President Austan Goolsbee said the June CPI report was “surprisingly benign,” but cautioned policymakers not to overreact to one month of inflation data.

In remarks during a fireside chat at the Kenosha Area Business Alliance Business Lunch event in Wisconsin, Goolsbee said he would feel more confident if inflation readings stay similar for several consecutive months.

He added that services inflation has remained “way too high,” while describing the latest services inflation reading as encouraging, and said he would feel “a lot better” if PCE inflation looked like the June CPI report for several months.

Goolsbee also said the US labor market is stable without being good, and noted that several month patterns would matter more than a single data point for policy confidence.

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