By Ann Saphir<\/p>\n
May 12 (Reuters) – Chicago Federal Reserve President Austan Goolsbee said on Tuesday that the government’s report showing accelerating consumer inflation last month was unexpectedly disappointing.<\/p>\n
Inflation is “going the wrong \u200cway, and it’s going the wrong way not just in oil-related things and not just in \u200ctariff-related things,” Goolsbee told the Greater Rockford Chamber of Commerce in Rockford, Illinois.<\/p>\n
“The numbers today were mostly what was expected, but the \u200bunexpectedly disappointing part in my mind was on the services side,” he said. “That’s the part that I’m nervous about. I want to see that at least stop growing and hopefully start going back down because that can’t really be from oil prices.”<\/p>\n
Here is more context and details:<\/p>\n
\u2022 U.S. consumer inflation rose 3.8% in April from a year \u200cearlier, its largest gain in three \u2060years, the Bureau of Labor Statistics said Tuesday.<\/p>\n
\u2022 The Fed in April held short-term borrowing costs steady in the 3.5-%-3.75% range. Goolsbee dissented because he disagreed with language \u2060in the Fed’s post-meeting statement that he and several of his colleagues felt expressed an unwarranted bias toward rate cuts ahead.<\/p>\n
\u2022 “I want us to be cognizant that the job market is basically stable and inflation is going up,” Goolsbee \u200bsaid on \u200bTuesday. “We’re not at this moment in a difficult balancing \u200bact between the two sides of the (Fed’s) mandate. \u200cOne side of the mandate is going wrong and the other side is not going. So in the short run, I want us to be cognizant of that.”<\/p>\n
\u2022 Jerome Powell, whose last day as Fed chair is Friday, is a “first ballot Hall of Fame Fed chair,” Goolsbee said, for steering the economy clear of a financial crisis during a tenure that spanned the COVID-19 pandemic and several large bank failures. Also, he \u200csaid, “in 2023 we had a large drop in the inflation \u200brate without a recession, which basically has never happened before, and \u200bit’s done in the context that Fed independence \u200bhas been under fire.”<\/p>\n
\u2022 President Donald Trump last year made an unprecedented attempt to \u200cfire a sitting Fed governor in a case \u200bthat is now before \u200bthe Supreme Court, and he supported a now-closed criminal probe of Powell that a federal judge quashed as mere pretext to get Powell to cut rates or resign.<\/p>\n
\u2022 Kevin Warsh, Trump’s pick to \u200bsucceed Powell, on Tuesday was confirmed \u200cto the Fed Board of Governors and cleared a procedural hurdle in the Senate that will \u200ballow him to be confirmed as the Fed’s next chair as soon as Wednesday.<\/p>\n
(Reporting by \u200bAnn Saphir; Editing by Mark Porter and Nick Zieminski)<\/p>\n","protected":false},"excerpt":{"rendered":"By Ann Saphir May 12 (Reuters) – Chicago Federal Reserve President Austan Goolsbee said on Tuesday that the…\n","protected":false},"author":3,"featured_media":791692,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[12],"tags":[10852,64,79392,79,241672,323199,142,5005,63558,67,132,68],"class_list":["post-791691","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-austan-goolsbee","tag-business","tag-consumer-inflation","tag-economy","tag-fed-governor","tag-greater-rockford-chamber-of-commerce","tag-jerome-powell","tag-president-donald-trump","tag-the-fed","tag-united-states","tag-unitedstates","tag-us"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116563185942984372","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/791691","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=791691"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/791691\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/791692"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=791691"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=791691"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=791691"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}