Chicago Fed’s Goolsbee Restoring Price Stability Won’t Be Painless Chicago Federal Reserve President Austan Goolsbee warned that returning inflation to the central bank's 2% target will be a challenging process, driven by persistent supply shocks from energy fluctuations and tariffs overlapping with strong economic demand. Speaking on the complex economic landscape, he emphasized that policymakers must account for the long-term impact these supply-side disruptions have on price growth. While acknowledging that supply shocks require a different evaluation than pure demand-driven pressures, Goolsbee stressed that there is "no ambiguity" about the Fed's commitment to act if demand begins to overheat the economy. Without concrete evidence that supply-driven inflation is fading, finding a credible path back to price stability remains a difficult and potentially painful endeavor.