Fed’s Goolsbee: Inflation would come roaring back
Austan Goolsbee, President of the Federal Reserve (Fed) Bank of Chicago, said that inflation will come roaring back, citing that with Oil prices rising, this is a stagflationary shock to the market in a prepared speech in Detroit on Tuesday.
Key takeaways:
Nothing in Federal Reserve Act says make the stock market happy, or make the president happy.
If actively talking about taking away the independence of the Fed, that's a bad idea.
Inflation would come roaring back.
Oil prices rising is a stagflationary shock.
Now in an uncomfortable situation, no obvious cookbook for Fed.
My immediate concern is stagflationary shock of oil prices before the tariff-price shock has gone away.
Job market stable but not great.
Cautious, nervous about economy.
The longer you go with high inflation, the more it gets ingrained into the economy.
Hopefully impact from oil will prove temporary.
$5/gallon gas will affect the supply chain.
There's anxiety about inflation coming back.
Possibility of stagflationary recession from oil price rise would be the worst outcome.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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