Two Federal Reserve officials warn that inflation is severe and "could get even worse"

Xinhua Finance Beijing, April 7 — As the Iran war has driven up energy prices, while the job market remains lackluster, both Fed officials Hamaq and Goolsby believe inflation is a more pressing issue than employment, suggesting they support tighter rather than looser monetary policy.

在 an interview, the two were asked to assess the economic situation using colors, from “red” meaning “urgent and alarming” to “green” meaning “all is well.”

When discussing the inflation outlook, Goolsby said, “At least it’s orange. The situation is not very optimistic.” “I had originally been optimistic that we would get back onto a 2% inflation target path, but oh boy, things have taken a sharp turn for the worse recently.”

Hamaq also expressed concern about inflation. She noted that inflation has been above the target level for five straight years and has been “basically flat” over the past two years; “now it’s absolutely a more vivid, brighter orange.”

As for employment, Hamark said she is optimistic about the outlook, perhaps a yellow-green. Goolsby rated the labor market as “yellow.”

Editor: Ma Mengwei

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