About Austan Goolsbee
Austan Goolsbee, president of the Federal Reserve Bank of Chicago, has recently expressed increased concern about inflation, stating that progress on disinflation has stalled and that the inflation rate is now rising. In multiple interviews in May and June 2026, Goolsbee noted that inflation has been above the Fed's 2% target for five years, and that after a period of progress, the improvement stopped last year and has recently deteriorated. He pointed to "warning signs" in services inflation, which he described as "high and rising" and not attributable to temporary factors like tariffs or oil prices. Goolsbee said he dissented from a rate cut at the last meeting of the previous year, feeling it was too early, and that he does not regret that position. He stated that the job market has been "stable without being good" and that, given the inflation picture, it "behooves us to take a serious look at what's happening on the inflation side."
On artificial intelligence, Goolsbee said in late May 2026 that while AI is "coming in fast" and will be "massively transformational," he does not expect rapid job losses, citing industries where the "oops factor" makes AI unreliable. He advised that health care is likely to remain a secure industry due to an aging population. Regarding the Federal Reserve's communications, Goolsbee expressed skepticism about the use of forward guidance and "committing three years ahead forecasts," and welcomed a communications task force organized by the chair. He also commented on incoming Fed Chair Kevin Warsh, saying he expects Warsh to bring "a lot of new ideas on monetary policy" and that it is "good" to have new ideas, while declining to specify a preferred direction for reducing the Fed's balance sheet.
Source: AI-verified profile updated from Austan Goolsbee's recent appearances.
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Transcript (13 segments)
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Liz0:06
Fox Business alert: we have gotten official confirmation from the White House. Incoming Federal Reserve Chair Kevin Warsh will be sworn in Friday in a ceremony hosted by President Trump. The Wall Street Journal puts it like this:
Why is that a challenge right now? It's obvious since Friday. West Texas Intermediate crude gained nearly 5%, to 106 and change a barrel, and earlier at 108. The surge in energy prices since the war with Iran began is starting to show up in last week's key inflation reports. For the month of April, the Consumer Price Index remained elevated for a second straight month, and the year-over-year number gained 3.8%, well above the 2% target that the Fed is looking for. April's Producer Price Index, PPI, also spiked. This was uglier: 6% in April year-over-year. March figures were revised higher across the board. The war began on February 28. Are they enough for my next guest to push the Federal Reserve to tighten its monetary policy? Joining me now is Chicago Fed President Austan Goolsbee. Austan, good to see you. Are you excited about Kevin Warsh?
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Austan Goolsbee1:45
Pretty excited. Kevin Warsh and I, I feel like we were foxhole buddies. We went through 2009, '10, and '11 financial crisis. He was at the Board of Governors and I was in the administration. I feel that I got a window to his character at a time of a lot of stress. I think coming in with new ideas, I'm excited for him to get there.
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Liz2:13
What does he need to be prepared for walking in on his first official day as chair? That seems like a dumb question. You have not been Federal Reserve Chair, but you run the Fed Bank of Chicago. You have been in on many meetings. Right now, he faces rising inflation. What are you expecting him to deal with when he walks in?
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Austan Goolsbee2:36
I think that is the key thing in this immediate term. We have got inflation too high. We have an inflation problem. We have been above target for five years in a row now. We were making progress, then we stalled out, and now it is getting worse. So, I think that has to be front of mind: we have to figure it out. We're always trying as an FOMC to balance two sides of the Fed's mandate by law: stabilize prices and maximize employment. The job market, to my eye, has been stable. It may not be good, but it has been stable. And inflation has not been stable, of course. It is rising. To the extent it is just coming from oil prices, we can hope that the war fades quickly and futures markets are correct, that the price of oil might come down in the near-term. But there were warning signs in the PPI and other parts that you cited about inflation. Namely, services inflation is high and rising, and that's probably not coming from oil or tariffs. I do think Chair Kevin Warsh will have a lot of things on his radar screen, and we could use some guidance here from the chair.
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Liz4:07
Austan, what is the harm—I know what it is—but what is the harm of cutting rates just a quarter of a percentage point at a time like this?
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Austan Goolsbee4:18
Well, we have to evaluate. It's a huge table. Everything should always be on the table, in my opinion. The danger in periods where inflation is high and rising is if you cut rates too much, you ignite the inflation more. If that inflation is a sign that the economy is running a little bit too hot, the hotter you make it, the more inflation you get.
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Liz4:52
People can borrow more if rates come down, they spend more, you continue to stoke the fire. Austan, how is it possible? Would you recommend cutting rates at this point? You, the last time you were here, said you wanted to be data-dependent. We have two pieces of data that look serious with rising inflation.
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Austan Goolsbee5:14
Yeah, I have been a little troubled by the inflation picture. I am not a voter this year. I was last year. And you saw me in the last meeting of the year, I dissented when they cut rates. I said it feels too early to me to do it. It feels like you want to be sure inflation is headed back to 2% before you front-load the rate cuts on just an assumption. I don't regret having that feeling then. We have not been getting the good news we need on the inflation side.
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Liz5:51
Okay. Austan, thank you so much for joining us on a busy news day.
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Austan Goolsbee5:57
Always great to see you, Liz.
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Liz5:59
We look forward to having you back. We love your perspective. Thank you.
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