Fed Official Goolsby: Housing Remains A Major Challenge To Inflation

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Chicago Fed President Austin Goolsby delivered further remarks, emphasizing the central bank’s ongoing battle with stubborn inflation that has yet to fall below the Fed’s 2% target. Chicago Fed President Goolsby previously spoke at the Economic Club of Minnesota.

If rising inflation means the economy is overheating, the Fed must do whatever it takes to get inflation down to 2%.

Housing remains a significant challenge to inflation.

If housing inflation eases, the path to 2% inflation becomes “somewhat optimistic.”

I don’t think we are stuck in the “last mile” of inflation.

Supply chains have largely repaired, but the benefits from increased labor supply are likely to continue into 2024.