Austan Goolsbee, President of the Chicago Fed, stated on September 21, 2026, that the Federal Reserve may need to adopt a more aggressive interest rate policy. This stance aims to address persistent inflation, which reached 3.7% in July 2026.
The central bank has revised its inflation target timeline, pushing the goal of reaching 2% inflation to 2027. This represents a delay of approximately two years from the original expectation that inflation would peak in the fourth quarter of 2025.
Goolsbee identified service sector inflation and high investment in AI data centers as primary drivers of demand-side pressure. He noted that infrastructure spending increases costs for electricity and construction labor.
The official maintained his hawkish position, recalling his dissent against an FOMC rate cut in December 2025. He warned that higher interest rates are necessary to curb inflation, though they may slow economic growth and impact employment levels.
