Chicago Fed’s Goolsbee Highlights Inflation Concerns, Hints at Rate Cuts Ahead of September Meeting

Chicago Federal Reserve President Austan Goolsbee expressed concerns about the potential inflationary impact of tariffs and uncertainty surrounding the U.S. labor market’s direction. In a pre-FOMC meeting statement, Goolsbee left open the possibility of adjusting policy sooner if employment weakens. He stated that rate cuts will be inevitable if the job market deteriorates. Currently, the Fed has seen only two months of moderating inflation, while the latest CPI report reveals a concerning surge in service inflation – a key area of concern for policymakers.