BusinessQuiet 4d · day 5
Goolsbee warns of 'hard way' back from stagflation amid inflation-employment trade-off
Chicago Federal Reserve President signals painful economic choices ahead as the central bank navigates competing pressures.
What to know
- Goolsbee acknowledged the central bank faces a difficult choice between managing inflation and supporting employment during stagflation.
- He characterized economic recovery from stagflation as requiring 'the hard way'—implying painful policy trade-offs ahead.
- The remarks signal the Fed's recognition that simultaneous inflation and employment pressures limit policy flexibility.
Austan Goolsbee Chicago Federal Reserve President
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Sep 22Sep 23Sep 24yesterdaynow · 2:27 PM ET
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Goolsbee describes stagflation trade-off at monetary forum
Chicago Federal Reserve President Austan Goolsbee delivered remarks at a Monetary and Financial Institutions Forum event characterizing the central bank's position during stagflationary pressures.
“This is exactly the painful trade-off between employment and inflation that stagflationary shocks always impose on a central bank. Unfortunately, in environments like that, the only way back is the hard way.”
— Austan Goolsbee -
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GOOLSBEE: “.. This is exactly the painful trade-off between employment and inflation that stagflationary shocks always impose on a central bank. Unfortunately, in environments like that, the only way back is the hard way.” (via Schwab)
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