Chicago Fed President "U.S. economy in a 'weird environment'... employment weakening and inflation rising"

Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said the U.S. economy is in a 'weird environment (weird environment)'.

Goolsbee attended an event in Grand Rapids, Michigan, on the 25th (local time) and said, "The U.S. economy is in a weird environment where the labor market is weakening and inflation is rising." Goolsbee said, "The biggest risk the U.S. central bank faces is 'stagflation (rising prices amid economic stagnation)'" and said, "(However) the economy is still on a 'soft landing' path where inflation falls while maintaining full employment."

He also mentioned the possibility of interest rate cuts. Goolsbee said, "If we secure data that full employment is being maintained stably and there is a possibility that inflation will return to 2%, interest rates could be lower than current levels," and said, "But it is somewhat risky to bring forward the timing of cuts until such a trend becomes certain."