AMNA NAWAZ: Welcome to the "News Hour."

Inflation is showing fresh signs of cooling,# ticking up 2.7 perce.. nearly half-a-point lower than many# economists had expected.

The new data## follows the release this week of# a long-delayed jobs report that## showed weak growth and the highest# unemployment rate in four years.

GEOFF BENNETT: Taken together, the numbers could# bolster the case for more rate cuts in 2026,## though, economists caution data# collection for both reports was## significantly affected by the government shutdown.

Last week, the Federal Reserve cut# interest rates for the third time in## four months, citing downside risks in the# employment market as its major concern.

For a perspective on the economy,# we're joined now by Austan Goolsbee,## president and CEO of the# Federal Reserve Bank of Chicago.

Welcome back to the program.

AUSTAN GOOLSBEE, Former Chairman, Council of# Economic Advisers: Thank you for having me.

GEOFF BENNETT: So let's start with today's## inflation report.

What stands# out to you in these numbers?

AUSTAN GOOLSBEE: Well, there's a lot to# like in the report that we saw today.

If you remember, because of the government# shutdown, we just literally went dark on## inflation data.

And what we saw right before# it went dark was a little bit disturbing.

There## were some categories of inflation that looked# like they were going up or not coming down.

This report today, what struck me overall is that# the headline numbers were much below where they## were expected, and that was pretty broad-based,# and it wasn't just concentrated in one freak## thing.

Now, one-month data is no months, as I# like to say, because there's a lot of variability,## and that's especially true when you're kind# of reaching down and pulling the bottle out.

We got to brush the dust off of it.

There are# imputations and things.

We would want to see## this sustained, but there was encouraging news,# the improvements that we saw in inflation today.

GEOFF BENNETT: Encouraging news.

For months now, the economy has# been s.. inflation easing, but the labor market# showing real signs of weakness.

When## you step back and look big picture,# what concerns you the most right now?

AUSTAN GOOLSBEE: Well, what concerns# me the most is if we were to get## more readings like the ones we were# getting before the data turned off,## where both sides of the so-called dual# mandate for the Fed, which the law says,## when we set monetary policy, we're trying to# maximize employment and stabilize the prices.

If both sides are getting worse at the same# time, that's a very uncomfortable position for## the Central Bank to be in.

And that's where# we were, progress on inflation stalled out,## but the job market weakening slowly, showing# some stability, but weakening pretty steadily.## If we return to a circumstance like# that, that'd be the biggest concern.

The more we get readings like the price# readings that we got today on inflation,## the more confidence we would have.

Now,# look, we're on -- we could be on path## back to 2 percent.

And then, in my view,# rates could start going back down again## to some settling point that's below# where we are today by a fair amount.

GEOFF BENNETT: Yes.

So is th.. AUSTAN GOOLSBEE: I don't -- for me, one# month is not enough information, certainly.

But the more information you get, you# just want to have some assuredness that## we are on path back to 2 percent.

If we make# progress like this multiple months in a row,## that gives you that kind of confidence.

You# just want to be a little careful one month.

There were -- as I say, if you get down# into the weeds of these inflation readings,## there are a lot of imputations where they said,# well, we didn't have any information in October,## so let's assume it was zero kind# of thing.

You wouldn't want to rely## just on one month's number when# the number is noisy like that.

But as I describe it, there's a lot# to like in this inflation report.## Let's get some more reports like that,# and then we will be feeling much better.

GEOFF BENNETT: Got it.

Bottom line, affordability remains Amer.. prices are the single biggest issue for voters# across the political spectrum; 70 percent of## those people who were polled said that the# cost of living in their area is not affordable.

What realistically can the# Fed do to ease that burden?

AUSTAN GOOLSBEE: Seventy percent is a big number.# That matches out here in the heart of the Midwest,## the Seventh District of the Fed.

All# the businesspeople I'm talking to,## all the consumers that I'm talking to, they're# mentioning prices as a major component.

The nature of what does affordability# mean, there's some aspect of that that## has to do with incomes too, not just what# the price level is.

And all of those things## in the economy are mostly not under the# Fed's direct control or intervention.

You got to remember, the Fed is taking# the lead on economic stabilization.## We're trying to figure out, where are we in the# business cycle?

If there's danger of recession,## then we want to consider loosening to try to# ease those dangers.

If the economy looks like## it's overheating and inflation is getting# up too high, we're going to work on that.

But what we do is not directly# about long-run economic growth,## long-run incomes.

We're just trying to stabilize# inflation and get it back to 2 percent.

That's## what we have stated as our goal.

And we're# going to do that.

It's just been -- we have## been elevated for a long time now, and it's# not as easy as you would hope it would be.

GEOFF BENNETT: Austan Goolsbee, president and## CEO of the Federal Reserve Bank of# Chicago, thanks again for your time.

AUSTAN GOOLSBEE: Yes, wonderful to see you again.