Fed's Goolsbee (2027 Voter) and Hammack (2026 Voter) both see inflation as a bigger problem than employment, via Reuters citing joint interview with Planet Money podcast (taped last Wednesday, pre-NFP)

Asked to describe economy using colour scheme from red to green.

Goolsbee

  • On inflation, at least orange; it has not been great.
  • Was optimistic inflation would get back on path to target but it is going from orange to red amid tariffs and energy price shocks.
  • On labour market, says it is "yellow" because of its low-hiring, low-firing state amid ongoing uncertainty.
  • On financial system, suggested it is yellow; he is happy with the payment systems but "a little more anxious" about asset prices.
  • "It does look like there is a lot of frothiness," unclear whether that is productivity-driven or a bubble waiting to pop.

Hammack

  • Inflation is bright orange.
  • Inflation been running above target for five years and has been "basically moving sideways" for the past two.
  • On the jobs market, she said unemployment rate is the best indicator.
  • Currently sat around where she estimates full employment should be but it is a fragile type of balance.
  • Outlook is yellow to green.
  • On financial system, says it is green, economy is in a good place from a financial stability view.
Context

The comments from Fed's Goolsbee and Hammack suggest a more hawkish tilt towards inflation concerns, indicating that they see inflation as a pressing issue compared to employment stability. Their views reflect potential challenges for the Federal Reserve in managing rates and imply that markets may need to recalibrate expectations around future policy, particularly as inflation expectations remain elevated.

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