Fed's Goolsbee says energy inflation is proving more persistent than expected
Chicago Fed President Austan Goolsbee said energy prices remain well above pre-war levels even with US-Iran talks under way. He warned the inflation outlook still carries risks. The remarks add to uncertainty over the Fed's summer policy path.
Chicago Federal Reserve President Austan Goolsbee told CNBC that even as the US-Iran negotiations begin to ease tensions in the energy market, oil prices remain significantly above the levels seen three months ago. In Goolsbee's assessment, the pass-through from energy to broader prices has been faster than policymakers initially expected.
Goolsbee said in his remarks that 'energy inflation has been more persistent than expected', and stressed that the Fed's current stance will continue to be data-dependent. The view weighed on rate-cut expectations; US 10-year Treasury yields edged higher in early trading.
Market participants read Goolsbee's comments as a more cautious signal on the Fed's summer policy calendar. The forthcoming PCE inflation print is regarded as critical for the outlook. This article is not personal investment advice.
More from North America
AI dominance raises concerns about the bull run, but the rally is broadening out
The US stock market rally has begun to spread beyond a handful of artificial-intelligence names into financials, industrials and healthcare. Analysts say earnings revisions and technical signals are supporting the broadening. Investors cautiously welcome the easing of narrow-leadership risk.
UAE says OPEC exit was a strategic economic move, not political
The United Arab Emirates said its decision to leave OPEC was a strategic economic choice rather than a political one. Officials told CNBC the move lets the country deploy spare production capacity freely and align output with its energy diversification plans.
BlackRock weighs $5-10 billion investment in SpaceX IPO
BlackRock is in talks to commit between $5 billion and $10 billion to SpaceX's upcoming initial public offering, The Information reported. The investment, if completed, would mark one of the largest single-firm commitments to a US listing in years.