Goolsbee says rates need to be raised if inflation does not ease, and can be cut once it falls back to 2%

Federal Reserve's Goolsbee stated that he is open to the possibility of inflation beginning to fall back towards the 2% target level. If there is conclusive evidence that inflation is returning to 2%, he would have no objection to cutting interest rates; but if inflation fails to decline, then rates would need to be raised. "At present, we don't have an employment problem, but there is indeed an inflation problem," Goolsbee said. "I'm willing to consider the view that the current inflation issue is not persistent, but rather the result of some supply shock that is about to fade. However, I would like to see evidence that this shock is subsiding. Otherwise, it's clear what actions we need to take."