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Goolsbee says supply shocks complicate Fed return to 2% inflation target

10/4/2026

Chicago Federal Reserve President Austan Goolsbee warned that the path back to the central bank's 2% inflation target is fraught with difficulty. He pointed to persistent supply shocks.

Energy volatility and tariffs drive these disruptions. They occur against a backdrop of robust economic demand.

Goolsbee stressed that policymakers must account for the long-term effects of these supply-side issues on price levels.

He distinguished these supply-driven pressures from demand-driven ones, noting they require different evaluations.