The Federal Reserve leader believes that the recession is exaggerated.
Speaking at the Asbin Ideal Festival in Colorado, the head of the Federal Reserve in Chicago, Austan Golsby, has prompted fears that the last shocks on the side of the show, such as definitions and global military conflicts, may lead to a return to the era of double inflation and the upper sky.
Golsby said that with unemployment near 4 %, an enlarged of about 2.5 % and the fall, he does not see any possibility that a tariff or another shock from the width side can cause actual stagnation similar to the seventies in the near -term, at a sign of an inflation at 13 % and unemployment exceeded 8 %.
“There is definitely the possibility of worsening the thing at the same time,” Golsby added, referring to inflation and unemployment. “And there is usually say, well, what is the duration of the variation of each side? Do you think it is temporary or do you think it is permanent? What is the size of each side … This is the way I think.”
Goodsbee did not make any expectations, but his statements come as the Federal Reserve continues to retain interest rates in an attempt to re -inflation to his 2 % goal.
Although the basic inflation, which excludes more volatile prices such as food and energy, has decreased from its peak 2022, it remained sticky in the main sectors such as housing and services.
Despite the pressure from the markets and President Donald Trump to reduce prices, Jerome Powell, head of the Federal Reserve, said that the agency needs to see stronger evidence that inflation is firmly under control, especially after several months of higher price indicators expected earlier this year.
In a post on Monday, Trump described the “Jerome” chair after it was too late “Powell” and said that people in the United States “should pay a 1 % interest” in a post on social media. The Trump administration is also looking for ways to replace Powell, although his term does not end until next May. The term Powell as a member of the Governor’s Council does not end until 2028.
The White House did not immediately respond to the comments.
