PBS News Hour - Full Show December 18, 2025 - PBS News Hour full episode
Dec 19, 2025
Austin Goolsbee, President and CEO of the Federal Reserve Bank of Chicago, dives into the latest economic data, highlighting a surprising slowdown in inflation. He explains how this might influence monetary policy and the limitations of the Fed when it comes to long-term affordability. The discussion also touches on President Trump's recent claims about inflation and the implications of a major arms deal with Taiwan, sparking controversy with China. Other topics include a tragic NASCAR incident and the reclassification of marijuana.
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Encouraging But Not Definitive Inflation Signal
- Inflation cooled more than expected in the latest report, but one month is noisy due to shutdown-related data gaps.
- Austin Goolsbee says sustained monthly improvements would justify confidence that inflation is returning to 2%.
Don't Base Policy On One Month
- Wait for multiple months of similar inflation readings before expecting Fed rate cuts.
- The Fed needs assurance of a sustained path back to 2% before loosening policy, Goolsbee says.
Affordability Extends Beyond Fed Reach
- Affordability involves both prices and incomes, and many drivers are outside Fed control.
- Goolsbee cautions the Fed's role is stabilization, not directly raising long-run incomes.