Federal Reserve official says fighting inflation likely to be ‘painful’, tell me about this news in (https://www.chicagotribune.com/2026/09/21/fighting-inflation/)

The report discusses remarks made on September 21, 2026, by Austan Goolsbee, president of the Federal Reserve Bank of Chicago, regarding the central bank’s ongoing efforts to tame inflation.

Key details from the news include:

• Economic Trade-Offs and “Pain”: Speaking in London, Goolsbee warned that bringing inflation back down to the Federal Reserve’s 2% target will likely inflict economic pain, specifically through softer labor market conditions and higher unemployment. He noted that forcing inflation down in the short term necessitates dampening demand below target employment levels.

• Persistent Supply Shocks: Typically, central banks prefer to wait out temporary supply-side disruptions. However, Goolsbee explained that the economy is currently facing a series of persistent supply shocksincluding elevated oil prices and tariffsleaving policymakers with little choice but to increase borrowing costs to force consumer and business demand down to match constrained supply.

• Diverging Perspectives within the Fed: Goolsbee’s assessment contrasts with remarks made the previous week by Federal Reserve Chairman Kevin Warsh. Following the Fed’s decision to raise the benchmark interest rate to around 3.9%, Warsh expressed optimism that inflation could be brought under control without inflicting significant harm on the labor market.