Chicago Fed President Austan Goolsbee says the central bank is done looking through supply shocks, days after a 25 basis point hike to 3.75%-4.00% and projections pointing to one more increase this year. Soft industrial output and falling housing starts complicate that hawkish signal.
Fed Chair Kevin Warsh left little room for a one-and-done read after Wednesday’s unanimous 25 bp hike, with markets still pricing another move at the October meeting. Source
Chicago Fed President Austan Goolsbee delivered the week's real signal from a stage in London, days after the Federal Open Market Committee's unanimous rate hike. His argument: persistent supply shocks, oil, tariffs, weather, and now AI-driven data-center demand, no longer earn the central bank's old habit of looking through them to the other side. That view comes from one of the Committee's more historically dovish voices. It reads less like commentary than a warning that the Fed's reaction function itself has shifted.
