Fed's Goolsbee (2027 voter) says the Fed must have courage to fight inflation

Is optimistic Fed can get back to 2% inflation as long as there is no more evidence of demand overheating. Arguments the Fed should cheapen federal borrowing costs are one of the reasons that Fed independence is important. Evidence on whether inflation reflects demand overheating or supply shocks remains conflicting and he is still sorting that out. If fiscal policy is driving up inflation the Fed has to take it into account. Does not think estimates of the neutral rate are helpful in short-run monetary policy decisions. 2% inflation target is still realistic, even in a world of repeated supply chocks. Market expectations reflect faith that inflation target will be met. If there is convincing evidence inflation is heading back to 2%, we have no problem with rates going back down. Fed does not currently have an employment problem, but it does have an inflation problem. Wants evidence to show that inflation is going away.