Fed Chatterbox July Edition

Economics Research 24 July 2026 | 7:46PM EDT

The Fed Chatterbox highlights notable comments on key topics from Fed officials since the Jan Hatzius | last FOMC meeting. A few themes stand out: Goldman Sachs & Co. LLC

David Mericle n Speaking after the soft June CPI report, though before the further increase in oil | prices during the blackout period, Vice Chair Jefferson said, “[The current] policy Goldman Sachs & Co. LLC

stance should continue to support the labor market while allowing inflation to Alec Phillips | resume its decline toward our 2% target as the effects of past tariffs and energy Goldman Sachs & Co. LLC

prices pass through completely.” President Williams similarly said that “The Ronnie Walker | current stance of monetary policy is well positioned” to return inflation to 2%. Goldman Sachs & Co. LLC

n In contrast, President Logan, also speaking after the June CPI report, said “I Elsie Peng | currently believe modestly higher interest rates would better balance the outlook Goldman Sachs & Co. LLC

and risks for the FOMC’s dual mandate goals.” Pierfrancesco Mei | n Many participants tied future decisions about whether to hike to upcoming Goldman Sachs & Co. LLC

inflation data. Several shared Vice Chair Jefferson’s view that “In a scenario Jessica Rindels | where actual inflation does not start to cool down soon, I believe that it could be Goldman Sachs & Co. LLC appropriate to reconsider our current policy stance to ensure we fulfill our commitment to deliver price stability.” Similarly, Governor Cook said, “If we do not see signs of disinflation soon, I am prepared to act,” and President Hammack said, “Right now, I see no tension in our mandates—inflation is too high and if that continues, it may mean that we need higher interest rates to bring inflation back down to target.” n At the same time, Vice Chair Jefferson, Governor Waller, and President Williams commented that they would support maintaining the current policy stance if inflation appears to be moving in the right direction over the next several months. n Several participants commented on why inflation remains elevated. They largely agreed with President Williams, who noted that it “primarily reflects three drivers: the effect of higher tariffs on imported goods; supply chain disruptions and higher energy and commodity prices owing to the conflict in the Middle East; and the robust demand for certain categories of goods and electricity associated with the surge in technology investment.” n Some participants worried about the consequences of inflation remaining high. Several shared Vice Chair Jefferson’s concern that “The quick succession of shocks raises the risk that inflation becomes entrenched and inflation expectations become unanchored.” A few also shared Governor Waller’s concern that “if this upward trend continues, it will be hard to push inflation back toward

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the Committee’s 2 percent goal with monetary policy at its current setting.”