Fed's Goolsbee (non-voter): Hard to get a throughline on inflation, how persistent or temporary it is; Reiterates inflation is going the wrong way, inflation side of the mandate is clearly the problem - CNBC interview
- Some inflation is being driven by one and done issues
- The PCE report was not all negative; Saw a little bit of improvement on services inflation
- Personally have long been uneasy with forward guidance, but I don't hate the 'dot plot'
- Welcomes Chair Warsh's taskforce examining the options on the dot plot
- Do not view balance sheet decisions as monetary policy
- World where future productivity gains from AI are factored into stock prices, and people start spending on that basis now, that can cause overheating
- Wages are not a good indicator of inflation; Inflation could go up before wages go up
- Applauds the streamlining of the Fed policy statemen