Chicago Fed's Goolsbee Says Fed Is Not on Track for 2% Goal

Chicago Fed President Austan Goolsbee said Friday that the Federal Reserve is not on track to reach its 2% inflation goal, while price pressures have spread beyond categories driven by energy costs.

Even if oil prices fall quickly, problems with refining capacity could keep diesel and jet fuel prices high, Goolsbee said.

He said data centers are pushing prices higher. Services inflation and rising medical costs, he added, may not ease quickly.

Goolsbee said the Fed cannot ignore inflation if demand is running too hot. He said worsening inflation data would prompt the central bank to take a more aggressive policy approach.