Fed's Goolsbee Warns Inflation Fight May Require Economic Pain
Source Summary
Federal Reserve Bank of Chicago President Austan Goolsbee stated that the central bank cannot disregard repeated and persistent supply shocks and must respond in ways that may cause economic hardship. Goolsbee indicated that the path to achieving the Fed's 2% inflation target may not be painless.
Why it matters
A Federal Reserve president's public statement on the trade-offs between inflation control and economic hardship signals the central bank's policy stance and shapes expectations for future interest-rate decisions.
