Moody's Talks - Inside Economics Austan Goolsbee Clears the Dirt
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Jul 11, 2025 
Austan Goolsbee, the President and CEO of the Federal Reserve Bank of Chicago and former chairman under President Obama, dives into the complexities of the current economy. He shares insights on the challenges of tariffs affecting interest rate normalization and reflects on past financial crises. Goolsbee weighs the controversial implications of artificial intelligence on jobs while maintaining a humorous perspective on economic discussions, revealing his ambition to blend the wisdom of Paul Volcker with the flair of Muhammad Ali.
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Goolsbee's Financial Crisis Experience
- Austan Goolsbee described working during the financial crisis as exhausting, with little sleep and basic meals.
- Despite the hardship, it was the least costly financial crisis to taxpayers by GDP share compared to history.
Inflation Falls Amid Uncertainty
- Inflation dropped sharply in 2023 without a deep recession or high unemployment as many expected.
- Recent tariffs and economic policies create uncertainty, delaying the Fed's return to normal interest rates.
Tariffs and Inflation Complexity
- Tariffs may cause only a transitory inflation increase if it's a one-time shock.
- However, risk grows if tariffs expand, cause retaliation, raise production costs, or trigger a business and consumer panic.