Federal Reserve Chair Austan Goolsbee says energy inflation is proving more persistent than expected, largely due to the ongoing Iran war. In an interview with CNBC, Goolsbee highlighted the stagflationary pressures building on the global economy, particularly affecting Asian markets.
Prediction markets now show a 66.3% probability that the Fed will not cut rates at all in 2026. The odds of a rate cut before June sit at just 2.2%. Goolsbee’s remarks reinforce a hawkish stance, suggesting the central bank will keep rates higher for longer to combat sustained energy price shocks.
Investors are watching upcoming FOMC meetings and the next CPI report for further clues on inflation trends.