Federal Reserve official Austan Goolsbee said he agrees with Fed Chair Kevin Warsh that inflation remains the Federal Reserve’s biggest concern right now.
Goolsbee’s comments suggest policymakers are still cautious about cutting interest rates while inflation remains above the Fed’s 2% target. Although the labor market remains important, persistent price pressures could limit the Fed’s ability to ease monetary policy.
The comments reinforce expectations that the Fed may keep interest rates higher for longer if inflation fails to cool further.
