Goolsbee says rates may need to rise if inflation does not return to 2%

Federal Reserve official Austan Goolsbee said interest rates would need to move higher if inflation fails to fall back to the Fed’s 2% target. He also said he remains open to the possibility that inflation may begin to ease and is willing to accept that current price pressure could be tied to supply shocks that are set to fade. At the same time, he said he wants to see evidence showing that those shocks are in fact receding. The remarks point to a conditional stance: rate increases remain on the table if inflation does not move back toward target, while any softer inflation outlook would need to be backed by clearer data on the supply side.