Fed’s Goolsbee Warns Persistent Energy Inflation, Productivity Expectations Could Require Higher Rates
Fed's Goolsbee said energy inflation has been more persistent than expected and warned that stronger market expectations for productivity gains could require tighter monetary policy. In that case, interest rates may need to rise in the U.S. and other countries, he said.
He added that supply shocks such as oil disruptions can make the inflation risks from anticipated productivity growth more severe. The comments suggest stronger growth expectations would not necessarily ease inflation pressure if energy costs and other supply disruptions persist.
From the sources (5 posts)
@cnbcEnergy inflation has been more persistent than expected: Fed's Goolsbee
@firstsquawkFed’s Goolsbee said energy inflation has shown greater persistence than expected, CNBC reported.
@tradfi*FED'S GOOLSBEE: THE BIGGER THE HYPE OVER FUTURE PRODUCTIVITY GROWTH, THE MORE INTEREST RATES MAY NEED TO RISE IN U.S., OTHER COUNTRIES
@firstsquawkAccording to Fed’s Goolsbee, supply shocks like oil disruptions make inflation risks from anticipated productivity growth more severe.
@firstsquawkAccording to Fed’s Goolsbee, the more markets expect productivity gains, the more monetary policy may need to tighten.