Energy inflation has been more persistent than expected: Fed’s Goolsbee
Austan Goolsbee, president of the Federal Reserve Bank of Chicago, speaks at the 29th annual Milken Institute Global Conference at the Beverly Hilton on May 6, 2026 in Beverly Hills, California.
Patrick T. Fallon | AFP | Getty Images
Energy inflation tied to the war in Iran is lasting longer than expected, creating a “stagflation shock” for Asian economies, Chicago Federal Reserve President Austan Goolsbee said Thursday.
Speaking to CNBC’s Kaori Enjoji at the Bank of Japan-IMES Conference, Goolsbee said initial forecasts in futures markets expect energy prices to be “much lower” than current levels.
While oil prices have fallen recently on signs of progress in US-Iran peace talks, prices remain well above pre-war levels.
International benchmark Brent crude futures increased by 1.81% to $96 per barrel, while West Texas Intermediate futures increased by 1.71% to $90.21 per barrel.
This compares with prices of $72 for Brent and $67.02 for WTI the day before the US and Israel attacked Iran.
Goolsbee also issued a warning for Asian economies, saying that “this is more of an old-fashioned stagflation shock” because they are energy importers.
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