US Interest Rates | Goolsbee: Inflation Has Become a Greater Risk

Austan Goolsbee, President of the Federal Reserve Bank of Chicago, stated that given the relatively stable unemployment rate, inflation is currently the biggest risk facing the U.S. economy. However, if the Iran conflict can be resolved quickly, the Federal Reserve may still cut interest rates later this year.

Goolsbee mentioned on CNBC that, considering that high oil prices could impact consumer expectations, inflation is currently considered slightly more of a priority for the Fed than employment. Inflation was already at an uncomfortably high level, and now rising oil prices—potentially becoming a persistent shock—add to the severity of the situation. We can only hope this won’t have a lasting impact on the economy.