Goolsbee Sees Restrictiveness Easing Once Clear Inflation Returning To Target

Chicago Fed President Goolsbee, a FOMC voter, has just given an interview to NPR’s Marketplace. While he notes that goods and services inflation has moderated, he is watching house prices closely as he sees them as “key”. Generally though he sounded more dovish as he believes that once it is clear inflation is returning to target, then policy doesn’t need to be as restrictive.

• Goolsbee warned that rates staying high for a prolonged period would be a “concern”.
• He said that housing has made some “progress” but needs to make more. While S&P/Case-Shiller house prices fell moderately through the second half of last year, they have been gradually rising again over 2023 and in September were almost 4% higher on the year.