Chicago Fed's Goolsbee says the Fed may need to abandon its long‑standing “look‑through” stance on supply shocks due to their recent frequency.
Since the 1970s the Federal Reserve has generally “looked through” supply shocks, intervening only when inflation spreads to other sectors or when inflation expectations become unanchored.
Chicago Federal Reserve President Austan Goolsbee is reported to argue that the increased frequency of recent supply shocks could require a new approach, suggesting the Fed should not automatically look through such events.
The available reporting is limited, providing no detail on specific policy adjustments or the timing of any potential shift.