Fed's Goolsbee says US inflation too high; Williams sees pressures easing
Chicago Federal Reserve President Austan Goolsbee said US inflation remains too high, while New York Fed President John Williams said price pressures are easing, highlighting a split among policymakers. In a live CNBC interview, Goolsbee declined to say where he thinks interest rates are headed. The comments come as markets weigh the Fed's next move.
Two senior Federal Reserve officials offered contrasting readings of the US economy, underscoring divisions over the path of interest rates. Speaking to CNBC from his home district, Chicago Fed President Austan Goolsbee said inflation was still too high but declined to speculate on where borrowing costs are headed.
New York Fed President John Williams struck a more reassuring tone, saying price pressures were easing. The split reflects a wider debate inside the central bank over how quickly inflation is returning to the 2% target and whether the labour market warrants caution before any rate cuts.
Investors are parsing every comment for clues on timing, with futures markets sensitive to shifts in the Fed's stance. Policymakers have stressed they will be guided by incoming data on prices and employment. The remarks landed as US stock indexes headed for a losing week, adding to uncertainty over the near-term direction of monetary policy.
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