Particle.news

Goolsbee Says U.S. Still Has an Inflation Problem

Services inflation is the sticking point that could keep borrowing costs elevated longer.

Overview

  • Chicago Fed President Austan Goolsbee warned that services prices are the most troubling part of inflation.
  • He pointed to recent consumer price data that ran hotter than forecasts as proof that pressures have not eased enough.
  • Goolsbee said higher energy costs can ripple through the economy as fuel and power bills raise the cost of many goods and services.
  • Commodity signals have firmed, with copper trading near its January high, which can add to cost pressures for manufacturers.
  • Investors are watching the Federal Reserve’s next steps, with some reports expecting Kevin Warsh could be confirmed soon, which would put his stance in focus.