WASHINGTON, March 23 (Reuters) – Inflation is the greater risk facing the U.S. economy right now with the unemployment rate remaining fairly stable, Chicago Fed President Austan Goolsbee said on Monday, though a quick resolution of the Iran conflict could still leave the Fed poised to cut rates later this year. With high gas prices […]
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Fed’s Goolsbee: Inflation now the greater risk, watching expectations closely – CNBC
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WASHINGTON, March 23 (Reuters) – Inflation is the greater risk facing the U.S. economy right now with the unemployment rate remaining fairly stable, Chicago Fed President Austan Goolsbee said on Monday, though a quick resolution of the Iran conflict could still leave the Fed poised to cut rates later this year.
With high gas prices threatening to influence consumer expectations, “at the moment I think inflation has got to be a little ahead of employment” as a Fed priority, Goolsbee said on CNBC’s Squawk Box. “To have already been at an inflation rate that was uncomfortably high…and now to add something that might be a lasting gasoline price shock, this is an intense moment and we have to hope that this does not prove to be a lasting impact on the economy.”
(Reporting by Howard Schneider; Editing by Toby Chopra)