Federal Reserve Governor Jeff Goolsbee told the Fed that determining a clear trajectory for inflation, and whether it is persistent or temporary, is difficult. He noted that inflation is moving in the wrong direction, partly due to a one‑off factor, and that price pressures in services are especially concerning. While the latest PCE report showed modest improvement in services, core inflation remains very high and on a troubling trend. Goolsbee expressed discomfort with forward guidance, welcomed the Fed chair’s working group on point‑in‑time forecasts, and warned that future productivity gains tied to AI could overheat the economy.