Fed's Goolsbee Warns Productivity Expectations Could Trigger Inflation, Necessitating Rate Hikes

GateNews
Chicago Federal Reserve President Austan Goolsbee warned Thursday morning at a Bank of Japan conference in Tokyo that markets anticipating significant future productivity gains could trigger inflation, potentially requiring the Fed to raise interest rates. In prepared remarks, Goolsbee stated: "Expectations of income growth, like wealth increases today, would drive spending increases and could overheat the economy before productivity gains actually materialize. In that case, interest rates may need to rise."
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