Fed's Goolsbee Says Mix Of Supply And Demand Pressures On Inflation Has More Impact On Pace Than Destination; If Inflation Is Mostly Demand Driven Rate Response Will Have To Be More Aggressive And More Front-loaded; Inflation Data Earlier This Year Seemed To Show Supply Shocks Waning; Now Some Of It Is Coming From Demand; The Fed Is Now More In The "Action Scenario" Given Mix Of Inflation Pressures
https://www.chicagofed.org/publications/speeches/2026/sept-21-omfif
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Why It Matters
The Fed leader said inflation is coming from both supply and demand right now. The Fed might need to raise interest rates faster if demand is the main problem.
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