Federal Reserve's Goolsbee has mixed opinions on the latest CPI data

Investing.com - Federal Reserve Chicago President Austan Goolsbee expressed both encouragement and concern on Friday regarding the latest Consumer Price Index (CPI) data.

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In an interview with Yahoo News, Goolsbee pointed out that service sector inflation remains an issue, stating that the latest CPI data shows service inflation is “not mild” and “quite high.” He described this elevated service inflation as “worrisome.”

The U.S. Consumer Price Index rose 2.4% year-over-year in January, down 0.3 percentage points from the previous month, marking the lowest level since May 2025.

The Chicago Fed President said that the U.S. economy has not yet reached the Federal Reserve’s 2% inflation target and noted that inflation appears to be “stuck around 3%.”

Despite these concerns, Goolsbee still believes there is “room to lower rates,” but emphasized that further progress in inflation is needed before taking such action. He expects inflation data to improve.

Regarding monetary policy, Goolsbee acknowledged uncertainty about the current restrictive level, stating, “I don’t know how tight the Fed’s policy is.”

On the labor market, he described the current situation as “stable,” with only “mild cooling” occurring. Goolsbee views American consumers as “the strongest factor in the U.S. economy” and predicts that if the employment market remains stable and inflation eases, consumer strength will continue.

Goolsbee also expressed hope that the economy has already experienced the “peak impact of tariffs on inflation.”

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