Austin Goolsbee’s optimistic outlook for inflation underscores why analysts increasingly think the Fed’s next move will be a rate cut, rather than an increase.

After more than a year of steady declines, inflation is ticking up again. But economists say this is just a temporary blip.

Coming on top of its previous rate hikes, the Fed’s latest move could lead to further increases in the costs of mortgages, auto loans, credit cards and business borrowing.

Wages are now rising faster than prices. The Federal Reserve isn’t ready to declare victory yet, since inflation isn’t consistently falling yet.