Fed's Goolsbee: Inflation now the greater risk, watching expectations closely - CNBC - Reuters

Federal Reserve President Austan Goolsbee said inflation poses a greater risk than previously thought and that the central bank is closely monitoring inflation expectations. Goolsbee's assessment signals a potential shift in Fed priorities away from concerns about weak economic growth toward renewed focus on price pressures. The Fed has cut interest rates in recent months, but persistent inflation could complicate future policy decisions if price growth doesn't moderate as expected. Goolsbee's comments reflect broader uncertainty within the Fed about whether inflation will continue to decline or re-accelerate, a concern that carries significant weight in setting monetary policy. The remarks underscore how closely the Fed is tracking wage growth and consumer expectations as indicators of whether inflation risks are truly contained.