Goolsbee Says Fed Is Still 'Way Above' Inflation Target as Trend Worsens

Goolsbee told the Yahoo Finance Invest 2026 event on Thursday that the Fed remains "way above the target." He said this was not a one-off month, noting it marks the third or fourth month in a row in which inflation isn't merely above target and stalled out. In several ways, he said, inflation looks like it's heading in the wrong direction.

The Chicago Fed president called on the central bank to stay "sober-minded" right now. His warning: the Fed appears to be edging closer to territory that has historically been a tough spot for any central bank trying to shake off inflation.

He isn't the only one sounding off. Cleveland Fed President Beth Hammack said Thursday that "real demand pressures" are feeding high inflation, along with secondary price pressures coming from energy costs. Hammack argued the Fed has missed its inflation mandate for years and that more restrictive monetary policy is needed, though she prefers steadier rate increases so the economy has time to adjust.

Other officials have made similar calls in recent remarks. Vice Chair for Supervision Michelle Bowman said persistent inflation and a firming labor market mean there is "still work to do" to reach the target. Dallas Fed President Lorie Logan said the Fed may need to move faster than the quarter-point hike approved in September, calling the current 3.75% to 4% federal funds rate too low, while Governor Christopher Waller said a half-point increase should be on the table if core inflation stays elevated.