Fed's Goolsbee Warns of Persistent Energy Inflation Impacting Markets

AI Summary

Austan Goolsbee, president of Federal Reserve Bank of Chicago, stated that energy inflation, exacerbated by the war in Iran, has persisted longer than anticipated. Brent crude futures rose over 1.81% to $96 per barrel, while West Texas Intermediate futures advanced 1.71% to $90.21 per barrel, significantly above pre-war levels of $72 and $67.02 respectively. Goolsbee expressed concern that ongoing inflation could create stagflationary shocks for energy-importing Asian economies. He noted that interest rates could settle below current levels if inflation trends towards the Fed's 2% target.