Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said inflation is not stalling but is getting worse [1].
These conflicting signals from a high-ranking Federal Reserve official create uncertainty regarding the central bank's future monetary policy and potential interest rate adjustments.
Speaking in an interview aired early April 2026 on Bloomberg Television, Goolsbee addressed the current state of price growth [3]. He said that inflation alone is getting worse and is not even stalled out in progress [1]. This assessment suggests a need for tighter policy if the trend continues to deteriorate [1].
However, other reports from the same period present a different view of the economy. In a statement via Reuters, Goolsbee said inflation is around 2.5% and falling [2]. Similarly, the Financial Post reported that Goolsbee said price growth slows [3].
These contradictions highlight a tension in how current data is interpreted. While some metrics suggest a cooling trend, the Bloomberg remarks indicate a more volatile environment. Goolsbee also said that unemployment remains near four percent [2].
The Federal Reserve's ability to manage the economy depends on accurate readings of inflation momentum. If prices are indeed rising more rapidly than previously reported, the central bank may be forced to maintain higher interest rates for a longer period to stabilize the U.S. economy [1].
“"Inflation alone is getting worse. It's not even stalled out in progress."”
The discrepancy between Goolsbee's statements suggests a lack of consensus on whether inflation has truly peaked. If the Fed views inflation as 'getting worse' despite a 2.5% reading, it indicates that the central bank may be prioritizing forward-looking risks over current data, potentially signaling a more aggressive stance on interest rates to prevent a wage-price spiral.
