world-economy

Chicago Fed Chief Warns of Persistent Inflation Pressures Beyond Energy Costs

Austan Goolsbee, president and CEO of the Federal Reserve Bank of Chicago, said inflation has worsened beyond expectations, with consumer prices rising faster than the central bank's 2% target. Energy costs are a primary driver, but Goolsbee cautioned that tariff-related inflation from last year has not fully dissipated, complicating the outlook. Service sector prices are rising independent of energy and tariff effects, suggesting broader price pressures throughout the economy. Goolsbee emphasized that American consumers face a significant inflation problem requiring action. The Fed official expressed hope that current economic shocks will begin to fade, though he acknowledged uncertainty about the timeline for relief.