A senior Federal Reserve official warned Monday that efforts to reduce inflation are likely to result in economic hardship, including higher unemployment. Austan Goolsbee, president of the Federal Reserve Bank of Chicago, delivered the remarks during a speech in London, highlighting the challenges faced by the central bank amid persistent global supply disruptions.

Goolsbee pointed to several ongoing supply shocks, such as rising oil prices linked to the conflict in Iran and the impact of tariffs, which have contributed to sustained inflationary pressures. Under normal circumstances, he explained, the Fed might allow these shocks to dissipate naturally, expecting inflation to moderate without aggressive policy action.

However, given the continuous nature of these supply-side disruptions, Goolsbee indicated that the Federal Reserve has limited options but to continue raising interest rates to rein in inflation. The central bank aims to return inflation to its long-term target of 2 percent, a goal that may require tightening monetary policy despite the associated economic pain.

“It’s going to be painful,” Goolsbee said in follow-up comments to reporters, emphasizing the necessity of enduring short-term difficulties to restore price stability. His remarks underline the Fed’s commitment to combating inflation even at the risk of slowing economic growth and increasing unemployment, reflecting ongoing concerns about balancing policy measures amid complex global conditions.