Goolsbee: Fed needs to "recalibrate" policy

In an interview with the Wall Street Journal last week, Mr. Goolsbee said the Fed had to "recalibrate" policy after a series of higher-than-expected inflation data. Mr. Goolsbee argued that one month was equivalent to zero, but that "three months" was at least "a solid month". "After six or seven months of very strong improvement and close to 2 per cent inflation, what we're seeing now is inflation well above that, and we have to recalibrate, we have to wait and see." The comments echoed his comments on Friday: "Progress on inflation has stalled so far in 2024. One doesn't take any one month's data too seriously, especially inflation, but the three-month parallel cannot be ignored."