Fed’s Goolsbee Says Services Inflation May Point to Overheating

Federal Reserve Bank of Chicago President Austan Goolsbee said inflation readings show pervasive price pressures in the US economy and may even indicate an overheating.

“If you look at the components that are not energy, like services, if that is an indication that the underlying economy is overheating then the Fed has got to be thinking about how do we break the chain of escalating inflation,” Goolsbee said Tuesday in an interview on NPR.

Inflation accelerated 3.8% in April from a year earlier, the fastest pace since 2023 amid an ongoing rise in gasoline prices driven by the Iran war, ...