Goolsbee says inflation remains too high as Williams sees easing price pressures

Chicago Fed President Austan Goolsbee said inflation is still moving in the wrong direction, even as he noted some improvement in services prices. He spoke Thursday from the Cboe trading floor and said the Federal Reserve should stay focused on bringing inflation down. New York Fed President John Williams offered a more optimistic view later in the day, saying he expects inflation readings to begin easing. He said current policy is well positioned and pointed to a few reasons inflation could slow, including lower tariff effects, easing energy prices if tensions in the Middle East cool, and slower shelter inflation. The comments came after the Commerce Department reported that the Fed’s preferred inflation measure rose to 3.4% in May, its highest level since October 2023. Markets still expect the Fed may consider a rate move at its next meeting in late July, though Goolsbee said he would not speculate on the path ahead.