Goolsbee: High CPI Concerning But Focus Remains on PCE and Future Housing Costs for Fed Policy

• Goolsbee says high CPI readings are concerning, but remains focused on PCE index which Fed targets for 2% inflation

• Notes PCE weights things like housing and healthcare differently than CPI

• Says need to see if arc of inflation is coming down based on future PCE data

• Housing costs key metric to watch - need to fall close to pre-COVID levels for overall inflation to hit 2% target

• Fed now likely to keep interest rates steady at next meeting with inflation still high