CoinWorld News reports that Chicago Federal Reserve Chair Goolsbee warned against instinctively lowering interest rates due to faster productivity growth, as this phenomenon can sometimes push up inflation. In prepared remarks released ahead of a panel discussion at the Milken Institute Global Conference, he said the Fed’s response to faster productivity growth “largely depends on whether the productivity growth is occurring unexpectedly or is expected to occur in the future.” In the first case, inflation may be suppressed, allowing interest rates to be lowered; in the second case, extra investment and spending driven by productivity growth could push up inflation, requiring higher interest rates. In addition, he emphasized the need to be on guard against consumption and investment driven by future growth expectations. “The more hype there is, the greater the demand for rate hikes to prevent overheating,” he said.