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Central BanksMediumUpdated×3•Originally published 25 June 2026•Updated 26 June 2026•
1 min read

Goolsbee: Inflation Still Too High, Noncommittal on September Rate Hike

Key Facts

1Chicago Fed President Austan Goolsbee said inflation is still too high despite some bright spots.
2Markets expect the Fed to raise rates in September, but Goolsbee would not commit to his stance.

As markets continue to price in a Fed rate hike in September, Chicago Fed President Austan Goolsbee's comments reinforced a hawkish tone without committing to a specific path. Goolsbee told CNBC that inflation remains too high despite some bright spots, and he declined to commit to supporting a rate hike at the next meeting. He added that recent data show progress but not enough to achieve the 2% inflation target.

The remarks come as markets closely watch US inflation indicators, with recent data showing a slight slowdown in consumer prices but still above target. According to market data, traders assign over a 60% probability of a 25-basis-point rate hike in September, putting pressure on risky assets. Goolsbee's speech follows hawkish comments from other Fed officials in recent days, reinforcing expectations of a continued tightening cycle.

On the trading front, investors are awaiting key US inflation data next week, along with further Fed speeches for clearer signals. If a September rate hike is confirmed, the dollar could strengthen against major currencies, while markets remain cautious.

Latest Updates · 2

  1. Notable·

    Update: In his latest remarks, Austan Goolsbee emphasized that core inflation remains very high and is trending in the wrong direction, reinforcing the hawkish tone. He also reiterated that inflation is the Fed's primary concern, echoing former official Kevin Warsh's guidance on interest rates. These comments add to the uncertainty surrounding the monetary policy path ahead of the September meeting.

  2. Notable·

    Update: In a subsequent development, New York Fed President John Williams added a relatively more optimistic tone on the inflation outlook. Williams said current monetary policy is well positioned to restore inflation to 2%, expecting inflation readings to gradually edge down in coming quarters, but warned that substantial risks remain. These remarks follow Goolsbee's hawkish but noncommittal comments, reinforcing a picture of a Fed divided between caution and cautious optimism.