Chicago Fed President Warns Oil Shock Could Be a Persistent Inflation Driver
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Chicago Fed President Goolsbee said on the 23rd that the Federal Reserve needs to treat the current energy shock as a factor that persistently pushes inflation higher, rather than expecting it to resolve on its own. Speaking on the podcast "Economics Applied" released on the 23rd, Goolsbee noted, "For large negative supply shocks, it's better to assume from the outset that the impact on inflation will be fairly persistent." He said the same thing happened during the pandemic and when tariff measures were imposed, and the same may be happening with the oil shock, so "we should be careful."