Hot January inflation report ’sobering,’ Fed’s Goolsbee says

Published 12/02/2025, 20:10
© Reuters

Investing.com -- Chicago Fed President Austan Goolsbee said Wednesday the unexpected pick up in inflation in January was "sobering," though cautioned that it was just a single report and it would take multiple months of high inflation data for the Fed to rethink the path of monetary policy.

The latest inflation data was “sobering,” Goolsbee said in an interview with the New York Times (NYSE:NYT) on Wednesday.

Data on Wednesday showed consumer prices unexpectedly accelerated to 0.5%, up from 0.4% in the prior month and faster than economists’ expectations of 0.3%. That took took CPI to 3.0% in the twelve months to January, above expectations for a reading of 2.9%.

The data further cooled expectations for sooner rather than later rate cuts just a day after Fed Chair Jerome Powell said the Fed isn’t in a hurry to cut rates as the economy remains strong and the rates continue to be restrictive.

Goolsbee echoed the Powell’s remarks that there would need to be further evidence of slowing inflation before backing another rate cut, though the Chicago Fed president said he continues to believes that rates would settle “a fair bit below” current levels.

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