Chicago Federal Reserve President Austan Goolsbee, who is not a voting member of the Federal Open Market Committee (FOMC) in 2026 — Chicago is not among this year's rotating regional seats — flagged inflation as his top concern heading into the fall. "My biggest short-run fear is that inflation is not under control," he said. Still, he saw some room for comfort: three-month inflation, he noted, "doesn't look terrible."
Goolsbee described a 3% rate paired with 2% inflation as the loose target the Fed is ultimately working toward. Turning to the labor market, he called the current mix of low hiring and low firing unusual by historical standards, even as he described the broader economy as stable on balance.
He was sharper on the political front, warning that political interference in central banks generally leads to inflation and admitting that political pressure on the Fed "puts me on edge."
Rounding out his remarks, Goolsbee flagged tariffs and war-related price increases as an ongoing challenge for policymakers trying to steer inflation back to target.
Key Quotes:
Monetary Policy
A 3% rate and 2% inflation is a loose target where we're headed.
Inflation
My biggest short-run fear is that inflation is not under control.
3-month inflation doesn't look terrible.
Labor Market
The current low-hire and low-fire job market is unusual.
Growth & Economy
The economy is on balance, has been stable.
Fed Transparency & Accountability
Political interference in central banks generally leads to inflation.
Political pressure on the Fed puts me on edge.
Geopolitical Risks
Tariffs and war-related price increases are a challenge for the Fed.