Fed's Goolsbee Warns of Risk From Negative Real Interest Rates -- Market Talk

Dow Jones05-28 16:52

0852 GMT - Chicago Fed President Austan Goolsbee warns of the risks of too-low interest rates amid growing inflation caused by the Middle East conflict. "The case of Japan, where even now you have very substantially negative real rates, is an odd circumstance historically and internationally," Goolsbee said in an interview with The Wall Street Journal on Thursday. "Whenever you're hovering around the zero lower bound, odd things can happen," he said. He also said that central banks always face the possibility of being behind the curve in controlling inflation when inflation is rising. Japanese bond yields have risen rapidly in recent sessions on concerns that higher energy costs will accelerate underlying inflation.(megumi.fujikawa@wsj.com)

(END) Dow Jones Newswires

May 28, 2026 04:52 ET (08:52 GMT)

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