[Federal Reserve's Goolsbee: Persistently High Inflation is 'Playing with Fire'] Golden Finance reported on September 30 that Austan Goolsbee, President of the Chicago Federal Reserve, stated that U.S. inflation has remained above the Federal Reserve's 2% target for over five and a half years. Maintaining high inflation levels for the long term is akin to 'playing with fire,' and the Federal Reserve needs to pay attention to the impacts of persistent supply shocks. Goolsbee remarked that the current situation is 'unpleasant,' but if supply shocks have long-term effects, the Federal Reserve may need to reconsider its previous policy logic of 'ignoring supply shocks.' He noted that before considering rate cuts, the Federal Reserve needs to see more evidence confirming that inflation is declining and that factors previously deemed temporary are dissipating. Goolsbee also warned that massive fiscal deficits themselves act as a stimulus measure, potentially leading to economic overheating. He stated that market expectations for future AI-driven productivity improvements could also contribute to current economic overheating risks, and the Federal Reserve needs to closely monitor changes in productivity. He pointed out that oil prices might drop rapidly, but the deeper issue lies in the process of refinery facilities resuming operations. Goolsbee emphasized that factors such as energy prices, AI investments, and fiscal stimulus could all influence the future trajectory of inflation.