world-economy

Chicago Fed Chief Goolsbee Flags Persistent Inflation Concerns Despite Limited Gains

Chicago Federal Reserve President Austan Goolsbee said Thursday that inflation remains a significant challenge for the central bank, though some improvements in services-sector pricing have emerged. Speaking from the Cboe trading floor, Goolsbee declined to forecast the Fed's interest rate trajectory and instead emphasized his continued focus on price pressures. Core personal consumption expenditures inflation reached 3.4% in May, marking the highest reading since October 2023, according to Commerce Department data released the same day. Energy prices drove much of the gains, jumping 6.5%. Goolsbee voiced support for Fed Chairman Kevin Warsh's decision to streamline communications and eliminate forward guidance from policy statements. The policymaker said inflation remains the more pressing challenge compared to labor market conditions.