The central bank may have to cause economic pain in the form of higher unemployment to combat stubbornly high inflation, a top Federal Reserve official said Monday.
Speaking in London, Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said that continuous supply disruptions, including tariffs and rising oil prices stemming from the Iran war, have pushed inflation higher. Typically, he explained, the central bank would wait for these temporary shocks to clear naturally instead of raising interest rates.
