Fed's Goolsbee Warns Oil Shock May Be Persistent Inflation Source

Chicago Fed President Austan Goolsbee stated that the current energy shock may have a persistent effect on inflation, contrary to expectations of a transient impact. He drew parallels to COVID and tariff shocks, suggesting the Fed may need to treat it as a persistent source. This signals a potential hawkish shift in Fed rhetoric, which could influence rate expectations and market pricing.