Overview
- Chicago Fed President Austan Goolsbee told Wired on Aug. 11 that fast-rising prices are the main risk to the U.S. economy and outrank fears about job losses.
- He described the labor market as stable but “without being good,” signaling limited room for the Fed to ease policy based on employment alone.
- Goolsbee highlighted persistent services inflation and price pressure from tariffs and energy as forces that could keep inflation elevated.
- His remarks offered no hint of imminent rate cuts and come after a divided July FOMC vote that left officials split over further tightening.
- With Fed guidance pared back, markets have repriced policy odds and will watch July and August CPI readings, services and shelter data, and the September meeting for the next clear signal.