Fed's Goolsbee says he hopes dangerous inflation data was a blip

by Maria Eloisa Capurro and Michael McKee

Federal Reserve Bank of Chicago President Austan Goolsbee said while some recent inflation readings have come in better than expected, he hopes one “dangerous” data point is just a blip.

“We’ve had some inflation reports that came in milder than we expected, and I was feeling good,” Goolsbee said Thursday in an interview with Bloomberg Television on the sidelines of the Fed’s annual conference in Jackson Hole, Wyoming.

“The last inflation report that came in, where you saw services inflation — which is probably not driven by the tariffs — really start shooting up,” he said. “It’s a dangerous data point, I’m hoping that that’s bit of a blip.”

The Fed’s September policy gathering “feels to me like it’s a live meeting,” he said.

The central bank has held interest rates steady this year, citing elevated uncertainty over the impact of tariffs on the economy. Fed Chair Jerome Powell will deliver a much-anticipated speech Friday, and investors will be listening for any hints on what policymakers may do next month.

Earlier this month, Goolsbee said the economic outlook remained mixed, and the bank would need to wait for more data before adjusting interest rates. He is a voting member on the FOMC this year.

Goolsbee’s comments come as the Fed faces heightened scrutiny from the Trump administration amid public calls to lower interest rates. The president called this week for Fed Governor Lisa Cook to resign, amid allegations that she committed mortgage fraud. Cook has said she won’t be bullied into stepping down.

In a separate interview with the Wall Street Journal, Boston Fed President Susan Collins suggested it might be appropriate to cut interest rates in September if labor market conditions weakened more than inflation risks increased.

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