MNI BRIEF: Goolsbee Sees No `Last Mile' Inflation Problem

Chicago Federal Reserve President Austan Goolsbee on Friday rejected the idea inflation has a so-called 'last mile' problem and was hopeful recent setbacks reflect a "bump" on the way back to price stability.

“There isn’t at this time much evidence in my view that inflation is stalling out at 3%,” Goolsbee said. Investors also don't see inflation taking back off again, he said.

While the last three months of inflation data merit something of a shift to a more wait-and-see mode, the Fed's policy rate remains high in real terms, Goolsbee said. “You have to think about how long you want to be in that position” of restrictive policy because at some point it will influence the job side of the dual mandate, he said. Batting away questions about what specific action the Fed may take, he expressed optimism labor supply growth will have some cooling effect on the economy again this year. (See: MNI INTERVIEW: Demand Boom Keeps Fed Patient For Longer-Koenig)