Inflation and interest message from Fed official

Chicago Fed President Austan Goolsbee said that the possibility of inflation remaining slightly elevated for a few more months is consistent with the expectation of a return to the 2 percent target. Goolsbee said that this does not mean that there will be no interest rate cut in 2024. Chicago Fed President Austan Goolsbee stated in a speech at the Council on Foreign Relations in New York that even if inflation remains elevated for a few more months, this will not change the picture. Goolsbee stated that monetary policy is sufficiently tight and said, “Inflation can have ups and downs. I do not support the idea of waiting until 12-month inflation falls to 2 percent to cut interest rates.” US inflation announced yesterday had risen above estimates, which caused the first interest rate cut expectation to be postponed to June. Goolsbee said that one should not look at just one data and said, “If you look at 3, 6 and 12-month inflation, you can clearly see that it is decreasing.” The official stated that the supply side could help inflation this year.