Fed’s Goolsbee: Oil shock makes problem of inflation from likely productivity growth more extreme

Chicago Fed President Austan Goolsbee made comments on the impact of supply shocks on monetary policy on Thursday.

Key quotes

Supply shocks, including an oil shock, make the problem of inflation from anticipated future productivity growth more extreme.

The bigger the hype over future productivity growth, the more interest rates may need to rise in the US, other countries.

Market reaction

At the press time, the US Dollar Index is up 0.12% on the day near 99.35.