The Federal Reserve may need to tighten monetary policy in response to oil prices' impact on the U.S. economy, said Chicago Fed President Austan Goolsbee.

In an interview with CNBC, Goolsbee said every option is on the table and rates could need to move in either direction.

"We could be back to the environment with multiple rate cuts for the year, if inflation behaves. I could see circumstances where we would need to raise rates if it was going a different way and inflation was getting out of control,"Goolsbee said.

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March 23, 2026 09:18 ET (13:18 GMT)

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