Chicago Fed President Austan Goolsbee indicated that the Federal Reserve might delay interest rate cuts until 2027 if high oil prices, potentially driven by conflict in Iran, keep inflation above the Fed's 2% target. Speaking at the Semafor World Economic Conference, Goolsbee noted that while he initially anticipated rate cuts by 2026, persistent inflation could extend this timeline. He emphasized the Fed's commitment to reducing inflation to its target level. Goolsbee, previously optimistic about inflation easing due to tariff reductions, acknowledged a shift in his outlook. He mentioned that while some scenarios could lead to rate increases, others might see temporary oil price shocks resolved, allowing inflation to fall and rate cuts to resume. His comments reflect growing uncertainty within the Fed regarding the inflation trajectory and its impact on monetary policy.