Chicago Federal Reserve Bank President Austan Goolsbee expressed optimism about recent inflation cooling but emphasized the need for more similar data over the coming months to confirm that price pressures are returning to the Fed's 2% target.

In an interview on Friday, Goolsbee noted that this summer's consumer price index inflation data has been encouraging, suggesting that price shocks from factors like tariffs and oil price hikes over the past year are gradually being absorbed by the economy.

"However, given that the previous five or six months were moving in the wrong direction, and overall inflation remains too high, the data from the last three months has been encouraging," Goolsbee stated. "If we can see similar data for three or four consecutive months, like the June figures, I would be more confident that we are on track to return to the 2% target."

Goolsbee supported the decision to hold interest rates steady at the July meeting, citing inflation as his primary concern. Regarding economic growth and the labor market, he described the U.S. economy as "broadly stable."

Decades of high inflation history, along with post-pandemic price pressures—where inflation briefly exceeded 7% in 2022 and has failed to meet the target for over five years—have made Goolsbee more cautious in addressing the current situation.

"I think both experiences have influenced my current policy thinking, making me more cautious and more focused on inflation," he said. "Both historical experience and the past five years show that once inflation builds momentum, eliminating it can be both painful and difficult."