Chicago Fed President: "CPI Worse Than Expected... Must Bring It Down"

Interview with NPR Public Radio

April Core CPI Exceeds Expectations

Surging Energy Prices Drive Inflation

Osthan Goolsby, President of the Federal Reserve Bank of Chicago, stated on May 12 (local time) that the inflation situation in the United States is more severe than expected, expressing concern not only about rising energy prices but also about the continued increase in service prices.

Ostan Goolsby, President of the Federal Reserve Bank of Chicago. Photo by AFP Yonhap News.

In an interview with U.S. public broadcaster NPR, President Goolsby commented on the Consumer Price Index (CPI) for April released that day, saying, "It was worse than we expected," and added, "It is well above the Federal Reserve's 2% target." He went on to say, "As any American consumer knows, the United States is experiencing an inflation problem, and we absolutely must bring it down."

On this day, the U.S. Department of Labor announced that the CPI in April rose 3.8% year-on-year. While this is in line with expert forecasts, it is the highest figure since May 2023.

President Goolsby acknowledged, "It is true that rising energy prices are currently a major driver of inflation," but analyzed, "The issue is that we have already gone through a period of high inflation, and since the end of last year, progress in easing inflation has stalled."

He pointed out in particular, "Even categories such as services that are not directly affected by tariffs or energy prices are rising, and this is above an appropriate level."

President Goolsby said, "Not only is the overall inflation rate high, but the trend in core inflation is also unfavorable."

The core CPI, which excludes volatile food and energy prices, rose 2.8% compared to the same month last year and 0.4% from the previous month, exceeding market expectations of 2.7% and 0.3%, respectively. This suggests that the underlying trend of inflation is stronger than anticipated.

President Goolsby explained, "All surveys and consumer sentiment indicators are showing dissatisfaction with prices and the burden of living costs," adding, "This reflects that the inflation burden felt by consumers is widespread."

This content was produced with the assistance of AI translation services.