Austan Goolsbee, president of the Federal Reserve Bank of Chicago, described the latest inflation figures as « surprisingly benign » and « encouraging » after the Consumer Price Index fell to 3.5% in June from 4.2% in May. US inflation has nonetheless exceeded the Fed’s 2% target for 65 consecutive months, with the Personal Consumption Expenditures index holding at 3.7% in July. Tariffs, surging energy prices amid Middle East tensions, and massive AI-related capital expenditure continue to fuel inflationary pressures. Goolsbee warned that several more months of positive data will be needed before declaring victory over persistent inflation.
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