Chicago Fed Pres. Austen Goolbee speaking to a Detroit economic club event, said:
- Inflation progress continues, economic growth has been strong, labor markets and vibrant.
- This year could see the fastest non-war related one-year fall in US CPI inflation in a century, with an unemployment rate that never gets above a 4%.
- He attributed this unusual situation to factors such as a rebound in supply following COVID-19 disruptions, increased productivity, and well-anchored inflation expectations.
- Still have a way to go before US central banks a 2% inflation goal reached.
- Positive supply development allows blockbuster economic growth without added inflationary pressure.
- He is more concerned about possible external shocks than about the economy overheating.
- Central bank should focus its attention mostly on inflation data.
- Key to further progress on inflation is housing, there will be some bumps.
Goolsby is more of a dove. He currently is a 2023 voter (but will not be a rotor in 2024