Recent inflation data was 'bad news,' Fed's Goolsbee says 

By Howard Schneider

Sat, May 2, 2026 astatine 2:06 PM CDT 2 min read

By Howard Schneider

WASHINGTON, May 2 (Reuters) - Inflation information past week was "bad news" for the U.S. Federal Reserve and means the Fed needs to beryllium cautious ‌about complaint cuts until ostentation begins to recede, Chicago Fed President Austan Goolsbee ‌said connected Saturday.

"We person got to get immoderate assurance that we are going backmost to the 2% ostentation target," ​Goolsbee said connected Fox News' "The Journal Editorial Report," referring to information past week showing the Personal Consumption Expenditures terms index, the cardinal bank's preferred ostentation measure, roseate astatine a 3.5% yearly complaint successful March.

Goolsbee noted that ostentation was rising adjacent successful work industries mostly insulated from ‌the interaction of tariffs and rising ⁠oil prices owed to the U.S.-backed warfare with Iran.

The creation of ostentation present "doesn't look good," said Goolsbee, who is not a elector connected ⁠rate argumentation this twelvemonth but dissented against a Fed complaint chopped successful December due to the fact that of what helium saw past arsenic rising ostentation risks, which person intensified successful caller weeks arsenic the terms ​of lipid ​has risen.

The Fed astatine its gathering past week ​held the argumentation complaint of involvement ‌steady successful the 3.5% to 3.75% scope connected an 8-4 ballot that was the astir divided since 1992. Three of the dissents were against connection indicating the Fed's adjacent determination was astir apt a complaint cut.

Goolsbee said the divided determination showed the imaginable complications successful offering "forward guidance" astir the way of monetary policy, successful this lawsuit prompting dissents from 3 ‌officials who supported the existent complaint determination astatine ​the meeting.

Asked astir existent Fed Chair Jerome Powell's determination ​to stay arsenic a Fed politician ​after incoming Fed Chair Kevin Warsh is confirmed by the Senate successful ‌the coming weeks, Goolsbee said helium was ​both gladsome to person ​Powell's continued input and "excited" for Warsh's arrival.

"I similar (Powell) rather a lot. I volition beryllium blessed helium is going to power to a governor's spot but inactive beryllium ​there. He has been judicious ‌and helium has insights," Goolsbee said. He added astir Warsh that helium was "excited ​to spot him travel successful and spot what people helium is going ​to make."

(Reporting by Howard SchneiderEditing by Rod Nickel)