Fed’s Goolsbee Says Path to 2% ‘Unlikely to Be Painless’

Federal Reserve Bank of Chicago President Austan Goolsbee warned Monday in London that the path to 2% inflation is 'unlikely to be painless.' He said the central bank cannot ignore repeated and persistent supply shocks and must respond in a way that may cause economic hardship, calling it a 'painful trade-off between employment and inflation' typical of stagflationary shocks.