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Goolsbee Warns Inflation Still Above Target, One Rate Hike Expected

6/23/2026

31 3 Full Breakdown

Summary

Goolsbee Warns Inflation

Fed President Austan Goolsbee said on June 22 that inflation stays above the Federal Reserve’s 2% target and may not be temporary.
He reported a 4.2% CPI rise in May and a 3.8% PCE in April.
Goolsbee said services inflation is persistent and not driven by Iran-war oil spikes or tariffs.
He reaffirmed his dissent at the June FOMC and said about half of policymakers expect one rate hike this year.

Summary

Goolsbee Criticizes Fed

He praised Chairman Warsh’s task force to rethink the Federal Reserve’s (Fed) communication strategy and cut forward guidance.
He said input from Midwest manufacturers in Rockford, Illinois helps the Fed spot supply-chain issues before they appear in data.
He warned that inaccurate Fed statements damage credibility, likening reduced guidance to a “caffeine cleanse” that could improve trust.

History

Historical Context

In 1979 President Jimmy Carter appointed Paul Volcker as Federal Reserve Chairman to confront stagflation that had pushed inflation to 13.5 % by 1980. Volcker’s aggressive rate hikes forced a deep recession but cut CPI growth to low single-digit levels by 1983. Today, Fed officials cite that 1979-80 tightening as a template for battling persistent services-price inflation.

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Goolsbee Warns Inflation

Fed President Austan Goolsbee said on June 22 that inflation stays above the Federal Reserve’s 2% target and may not be temporary.
He reported a 4.2% CPI rise in May and a 3.8% PCE in April.
Goolsbee said services inflation is persistent and not driven by Iran-war oil spikes or tariffs.
He reaffirmed his dissent at the June FOMC and said about half of policymakers expect one rate hike this year.

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