Chicago Fed President Questions Harris' Price Gouging Ban

Chicago Federal Reserve President Austan Goolsbee expressed skepticism regarding Vice President Kamala Harris’ recent proposal for socialist-style price controls to combat inflation. While he refrained from directly naming Harris, Goolsbee emphasized the importance of cautioning voters against over-relying on measures like price gouging bans. He explained that wage adjustments typically lag behind price changes, leading to a complex relationship between costs and prices throughout the business cycle. During an appearance on CBS’ “Face the Nation,” Goolsbee highlighted the variability in how prices and costs interact, urging a careful interpretation of economic data. His comments come in the context of Harris’ assertion that, despite a recent cooling in inflation rates—2.9% year-over-year—Americans are still grappling with high living costs. Harris articulated the struggles many face in achieving financial stability, emphasizing that the economic situation remains challenging for a significant portion of the population. As the 2024 elections approach, economic issues are at the forefront of voters' concerns, according to a recent poll by The Economist/YouGov. Former President Donald Trump, speaking at a rally, criticized tariffs as a burden on the economy, claiming they lead to higher prices. Goolsbee acknowledged that while tariffs may not directly trigger inflation, they do increase costs for producers and consumers in the short term. Looking ahead, Goolsbee noted that the Federal Reserve is preparing for its annual meeting in Jackson Hole, Wyoming, where discussions on potential rate cuts and the possibility of a recession will be on the agenda.