FED'S GOOLSBEE CALLS CPI DATA "DISCOURAGING," SAYS SERVICES INFLATION IS A CONCERN

He said the focus should be on the trend in inflation, not one report, and that the Fed needs to keep a close eye on services inflation. He hopes energy will fade from the inflation data soon, and said evidence is building that inflation hasn't been transitory amid continued shocks.

- More bad months of inflation would be unacceptable
- If current inflation levels hold, policy would need to address that
- The Fed must prevent a build up of overheating, and there is no ambiguity if the economy is solid and inflation is high
- He doesn't want to tie hands on the monetary policy outlook and isn't a fan of telegraphing Fed moves ahead of meetings
- Contacts are talking about costs and prices, not recession worries
- He is more optimistic about the outlook than other Fed officials
- The Fed will get inflation back to 2%