Chicago Federal Reserve Bank Governor Goulsby said that he is encouraged by recent improvements in US inflation, but similar data will be needed for several months to be sure that inflation continues to fall back to the Fed's 2% target. He said that inflation is his primary concern, while saying that the US economy “remains basically stable” in terms of growth and the labor market. Goulsby supported keeping interest rates unchanged at the July interest rate meeting. Given that inflation has been above target levels for a long time, he remains cautious. Recent weakening inflation data, weak retail sales in July, and relatively lackluster employment growth have caused investors to lower their expectations for the Fed to raise interest rates. Currently, the market anticipates a 30% chance of interest rate hikes in September, but a month ago, the market expected much higher. Goulsby also warned that productivity increases brought about by artificial intelligence and other technologies do not naturally support lower interest rates, because large-scale investment expenses may eventually cause the economy to overheat.

Chicago Federal Reserve Bank Governor Goulsby said that he is encouraged by recent improvements in US inflation, but similar data will be needed for several months to be sure that inflation continues to fall back to the Fed's 2% target. He said that inflation is his primary concern, while saying that the US economy “remains basically stable” in terms of growth and the labor market. Goulsby supported keeping interest rates unchanged at the July interest rate meeting. Given that inflation has been above target levels for a long time, he remains cautious. Recent weakening inflation data, weak retail sales in July, and relatively lackluster employment growth have caused investors to lower their expectations for the Fed to raise interest rates. Currently, the market anticipates a 30% chance of interest rate hikes in September, but a month ago, the market expected much higher. Goulsby also warned that productivity increases brought about by artificial intelligence and other technologies do not naturally support lower interest rates, because large-scale investment expenses may eventually cause the economy to overheat.