Austan Goolsbee, president of the Federal Reserve Bank of Chicago, is sounding the alarm on inflation. His message is blunt: the numbers look bad, and they’re coming from places that make them hard to explain away.
Goolsbee characterized recent inflation data as “bad news,” noting that price pressures are showing up across the economy in a pattern that may point to overheating. The concern isn’t just about headline numbers. It’s about where the inflation is coming from.
The numbers behind the worry
April wholesale inflation jumped 6% year-over-year, marking the steepest annual increase since 2022. What makes this particularly uncomfortable for the Fed is that inflation is showing up in service sectors. These are parts of the economy that are largely insulated from external shocks like tariffs or swinging oil prices. When inflation is driven by energy…
