Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said the latest consumer price index (CPI) presents a mixed picture. Despite a slowdown in the headline measure, services inflation remains “untamed,” calling into question a quick return to the 2% target.

In an interview with Yahoo News, Austan Goolsbee emphasized that inflation has effectively settled near 3%. The main worry is the services sector, where inflationary pressure remains stubbornly high. The annual CPI for January came in at 2.4%, the lowest since May 2025, but the index’s structural components give the Federal Reserve no reason for premature optimism.

The policymaker acknowledged he does not know exactly to what extent the current Federal Reserve policy is restraining economic activity, but he left the door open to future rate cuts. At the same time, he stressed that the central bank will need irrefutable evidence of further slowing inflation before easing monetary policy.

Austan Goolsbee identified the American consumer as the main pillar of economic resilience, with spending supported by a steady labor market. He also expressed hope that the impact of import tariffs on consumer inflation has already peaked and will ease going forward.