From Reuters via Yahoo Finance, February 20:
Chicago Federal Reserve President Austan Goolsbee on Thursday said he does not expect the inflation reading the U.S. central bank uses to set its inflation target to be as "sobering" as the previously reported Consumer Price Index figures.
Last week, the Labor Department reported a larger-than-expected 0.5% month-over-month increase in CPI for January. The year-on-year figure also climbed back to 3% for the first time since June, having risen each month since September. The comparable Personal Consumption Expenditures Price Index the Fed uses for its 2% inflation target is due to be released next week, and most economists estimate it will show less of an increase than reflected in the CPI.
"The CPI number was not great," Goolsbee said at a Chamber of Commerce event in Chicago. "The PCE number ... is probably going to still be not great, but it's not (going to be) as sobering as the CPI number."....
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