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Goolsbee says US inflation could return to a 2% “golden path”
Chicago Fed President Austan Goolsbee said July CPI and PPI came in relatively benign, and he called inflation near 3% “too high” even as readings improve.
Chicago Fed President Austan Goolsbee said recent US inflation data have been “a little better,” and that price growth could resume its decline toward the Federal Reserve’s 2% target if earlier shocks fade. Speaking in a Thursday interview with Fox News, he described the path back to 2% as a “golden path” that depends on temporary effects moving into the rearview mirror.
Goolsbee cautioned that inflation around 3% is still “too high,” even with better data. He acknowledged that disinflation had previously stalled and even shifted in the wrong direction, but said recent readings may be changing that outlook.
He pointed to signs that tariff-related and Iran-war oil shock effects are not becoming embedded in broader price pressures. He also said July CPI and PPI were relatively benign, and that policymakers are mostly watching the inflation component, supporting patience as the Fed assesses whether improvement is durable.
On the economy, Goolsbee characterized it as “fairly stable.” His comments implied there is little urgency to change rates as incoming price data continue to improve, while the Fed determines whether the trend toward 2% can be sustained.