Goolsbee wants to wait. Cannot assume the current inflation will be transitory

Goolsbee's Insights on Inflation

Fed's Goolsbee recently shared his views on current inflation on CNBC, highlighting concerns that it may not be transient. He explained his position during the recent FOMC meeting, where he voted against the majority to maintain interest rates unchanged while other members favored a cut. Key points from Goolsbee's comments include: - Inflation Durability: He cannot assume current inflation is merely temporary. - Policy Wait and See: Waiting until Q1 to assess inflation trends is essential for policy decisions. - Stable Job Market: The job market's steadiness counters narratives of economic downturn, with low hiring and firing rates. - Concerns About Services Inflation: Issues regarding inflation in the service sector prior to potential government shutdowns raise red flags. Despite his cautious optimism towards potential rate cuts, Goolsbee mentioned the need for careful analysis before implementing new policies, especially about frontloading rate reductions.