Fed’s Goolsbee: Housing remains a significant inflation challenge

Further comments from Chicago Federal Reserve (Fed) President Austan Goolsbee highlighted the Fed’s ongoing battle with stubborn inflation that refuses to cool off to the US central bank’s 2% target. Chicago Fed President Goolsbee’s comments come on the heels of comments the policymaker made earlier while speaking at the Economic Club of Minnesota.

Key highlights

If the uptick in inflation means overheating, the Fed has to do whatever we have to do to get inflation to 2%.

Housing remains a significant inflation challenge.

If housing inflation comes down, there will be an “optimistic lane” towards 2% inflation.

I don’t accept we are stuck at the “last mile” of inflation.

The supply chain is mostly healed, but benefits of the increase in labor supply may last during 2024.

Fed’s Goolsbee’s earlier comments: We hit an inflation bump this year, now we wait