Fed's Goolsbee: Fed needs to recalibrate policy

In an interview with the Wall Street Journal last week, Fed Governor Goolsbee said that after a series of higher-than-expected inflation data, the Fed must "re-adjust" its policy. Goolsbee believes that one month is equivalent to zero, but "three months" is at least "a real month". "After six or seven months of very strong improvements and inflation close to 2%, now we are seeing inflation far above that level. We must readjust and we must wait and see." This statement echoed his remarks last Friday: "So far, in 2024, progress on inflation has stagnated. People will not over-value any one month's data, especially inflation, but similar situations in three months cannot be ignored." (Jinshi)