Fed’s Goolsbee Urges Caution After One-Month Inflation Jump

Federal Reserve policymaker Austan Goolsbee said the central bank should avoid overreacting to the latest uptick in the producer-price index, consumer-price index and import-price data, while acknowledging that the figures warrant close monitoring. Goolsbee added that officials must determine which portions of recent price pressures can be ignored and which require a policy response. He emphasized that the Fed does not need to keep interest rates elevated indefinitely and could adjust them to their long-run level if forthcoming inflation reports resemble the more moderate readings seen earlier in the year.