Fed's Goolsbee says strong demand may be adding to inflation along with energy, tariff and other supply shocks
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Fed's Goolsbee says strong demand may be adding to inflation along with energy, tariff and other supply shocks
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- There is "no ambiguity" on what the Fed would do if demand is overheating.
- Evidence is needed that supply-driven inflation is fading, or it is hard to see a credible path back to 2% inflation.
- Supply shocks are proving to have a persistent impact on inflation and must be accounted for in setting monetary policy.
- Restoring price stability will not be painless.
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