Fed’s Goolsbee: Productivity's impact on inflation and interest rates could go in either direction

Austan Goolsbee, President of the Federal Reserve (Fed) Bank of Chicago, spoke at the 2026 Milken Institute Global Conference in California on Wednesday. He stated that the impact of rising productivity on inflation remains an active topic of debate among the Fed.

Key takeaway:

The impact of rising productivity on inflation remains an active topic of debate.

If households anticipate future income and wealth gains from higher productivity, they could boost spending and inflation.

Productivity's impact on inflation and interest rates could go in either direction.”