Goolsbee Warns Strong Demand May Drive Rate Hikes
Chicago Fed President Austan Goolsbee stated that persistent inflation driven by strong economic demand could require a faster pace of interest rate increases. He noted that robust investment and high services inflation suggest cost pressures remain stubborn.
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Strong domestic demand in the United States is driving persistent inflation, potentially forcing the Federal Reserve to adopt a more aggressive rate-hike path, Chicago Fed President Austan Goolsbee said on Monday. The warning follows a quarter-point rate increase by the central bank last week after the end of a two-day meeting. The Fed's main inflation gauge stood at 3.7% in July on a year-over-year basis, showing little recent improvement.
