Chicago Federal Reserve President Austan Goolsbee said Tuesday that the market shouldn’t place too much emphasis on one month of “surprisingly benign” inflation data. Goolsbee’s statement references June’s Consumer Price Index (CPI), which fell 0.4% from May. That marked the largest monthly drop since April 2020.
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“I’m heartened by this CPI today but we need a lot more than one month to think that it is going well,” Goolsbee said at the Kenosha Area Business Alliance in Kenosha, Wisconsin.
Goolsbee Wants More Data Before Backing Inflation Decline
Goolsbee added that several more months of lower inflation readings would be needed to confirm a sustained decline. Furthermore, he said a downtrend in the Personal Consumption Expenditures (PCE) Index would strengthen his confidence that inflation is easing. In May, the PCE Index rose 4.1% year-over-year, the highest since April 2023.
Goolsbee didn’t comment on his monetary policy outlook. The Fed is set to meet for its next interest rate decision on July 29, where it is expected to hold rates steady, according to the CME FedWatch tool.