Odd Lots Why Austan Goolsbee Is Still Concerned About Inflation
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Aug 23, 2025 
Austan Goolsbee, President of the Federal Reserve Bank of Chicago and former Chairman of the Council of Economic Advisers, shares his insights on the current economic landscape. He expresses concern about lingering inflation, particularly in the services sector, while showing confidence in the strength of the labor market. Goolsbee discusses the complexities of monetary policy amidst expectations of interest rate cuts and the nuanced relationship between tariffs and inflation. His perspective sheds light on the ongoing challenges facing economic decision-makers.
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Goolsbee’s 50-State Road Trip
- Austan Goolsbee drove to Jackson Hole and completed visiting all 50 states with North Dakota as his 50th.
- He joked about joining the "Best for Last Club" after finishing his road trip.
Inflation Still The Main Concern
- Austan Goolsbee remains more worried about inflation than employment because recent services prices rose and inflation has been above target for years.
- He will shift to cut rates only if inflation trends back down and non-tariff categories stop rising.
Four Rates Give Cleaner Labor Signal
- Goolsbee judges the labor market with four rates: unemployment, hiring, layoff, and vacancy rates, which are less affected by immigration noise.
- Those rates still point to stable full employment similar to 2018–2019 despite weaker headline payrolls.