economy London, United Kingdom
Goolsbee says fighting inflation may require higher unemployment
2%
The Federal Reserve's inflation target is 2%.
Federal Reserve Bank of Chicago President Austan Goolsbee said in London that persistent supply shocks may require the Fed to raise interest rates, potentially causing higher unemployment, to bring inflation back to its 2% target.
1 sourcePBS NewsUpdated
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AllegedAustan Goolsbee said the Federal Reserve may need to cause higher unemployment to combat inflation.
“the central bank may have to cause economic pain in the form of higher unemployment to combat stubbornly high inflation”
AllegedAustan Goolsbee said persistent supply shocks have driven up inflation.
“the Fed is facing a series of persistent supply shocks that have driven up inflation”
AllegedAustan Goolsbee said higher oil prices from the Iran war and tariffs were among the supply shocks affecting inflation.
“including higher oil prices from the Iran war and tariffs”