PANews reported on May 7th that Chicago Federal Reserve President Goolsby warned against instinctively lowering interest rates due to faster productivity growth, as this phenomenon can sometimes push up inflation. In prepared remarks delivered before a panel discussion at the Milken Institute Global Conference on Wednesday, Goolsby stated that the Fed's response to faster productivity growth "depends largely on whether productivity growth is unexpected or anticipated." He indicated that in the first case, inflation might be contained, allowing for lower interest rates. In the latter case, the additional investment and spending resulting from productivity growth could push up inflation, necessitating higher interest rates. Furthermore, he emphasized the need to be wary of consumption and investment driven by future growth expectations. "The more hype there is, the greater the need to raise interest rates to prevent overheating," he said.