Fed's Goolsbee says inflation data improving, hopes tariff effects fade
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Goolsbee's comments add a third data point to a week that has increasingly split the Fed along familiar lines, with his tariff and oil driven framing echoing Barkin's shocks should pass argument from Thursday rather than Hammack's insistence that policy needs to tighten now. The
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Fed's Goolsbee:Inflation is going the wrong way, not just in oil and tariff related things
The desk interprets recent comments from Fed's Goolsbee as indicative of a more hawkish stance on inflation, particularly concerning services inflation. Per the full note [source], Goolsbee highlighted that inflation is not only driven by oil prices and tariffs but is also rising in the services sector, which presents a significant concern. This shift in tone suggests that the Fed may need to maintain a tighter monetary policy for longer than previously anticipated. The current consensus among firms indicates a target for the USD at 1.075, with expectations of continued volatility in the FX market as traders digest these insights.
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