Increases in consumer prices in January-March that were higher than expected has caused Fed officials to rethink the timing of rate cuts, said economist Austan Goolsbee, who lead the Federal Reserve Bank of Chicago.

Officials with the U.S. central bank have telegraphed plans to cut interest rates this year, but stubborn inflation is shifting expectations

The Fed will have to keep interest rates high to meet its inflation target but give up on maintaining financial stability, or else it can cut interest rates to stabilize the financial system