Fed's Goolsbee Warns Supply Shocks Risk Persistent Inflation

Chicago Fed President Goolsbee flagged tariffs, COVID, and oil shocks as drivers of persistent inflation effects, cautioning policymakers to assume bigger negative supply shocks have durable impact on prices. Comments echo PCE inflation concerns (3.7% vs 2% target) shaping rate trajectory; markets await unemployment claims and consumer sentiment data to gauge Fed's next move.