Federal Reserve Bank of Chicago president warns of inflation risks in US economy
Federal Reserve Bank of Chicago President Austan Goolsbee warns that persistent inflation and a tight labor market may force further interest rate adjustments.Summary
Federal Reserve Bank of Chicago President Austan Goolsbee has signaled growing concern over U.S. inflation following a 6% year-over-year jump in wholesale prices for April. Unlike energy-driven spikes, this current inflation is embedded in the services sector, suggesting the domestic economy may be overheating.
Combined with stable job growth, policymakers fear the potential for a wage-price spiral. With the Fed committed to a 2% target, these persistent pressures reduce the likelihood of near-term interest rate cuts. While markets initially hoped for policy easing, this new data suggests a period of tighter monetary policy may persist, creating headwinds for risk assets like cryptocurrencies which rely on high liquidity.
(Source：Crypto Briefing)