Federal Reserve Bank of Chicago President Austan Goolsbee said on Thursday that the upcoming Personal Consumption Expenditures (PCE) price index may not reflect the same level of cooling seen in the recent Consumer Price Index (CPI) report. Speaking at the event Navigating the Year Ahead: A Conversation with Austan Goolsbee on the Midwest Economy, he emphasized that the Fed remains committed to its mandate of stabilizing prices and employment, adjusting policy based on evolving economic conditions.
Goolsbee underscored the Fed's independence from political influences in monetary policy decisions, saying the central bank is designed to be "as independent of politics when setting monetary policy as it is possible to be." He also expressed concern about potential supply shocks, noting that external factors such as tariffs and geopolitical tensions could impact inflation.
He noted these developments impact prices and employment, but the Fed's focus is on analyzing their combined effects rather than taking a stance on policy decisions.
