Chicago Federal Reserve President Austan Goolsbee said the latest threats of additional tariffs on imported goods risk reigniting price pressures and could postpone the U.S. central bank’s plans to begin cutting interest rates, according to comments reported by the Wall Street Journal and a Moody’s podcast released Friday. Goolsbee said he wants to see “a few more months of excellent inflation reports” before endorsing a policy pivot and cautioned that new levies make it harder to gauge whether the economy is still on a “golden path” toward a soft landing. He added that the Federal Reserve will remain independent despite political pressure. Following the remarks, futures traders trimmed bets on a September rate reduction, which had been priced at roughly a 68% probability.
Fed's Goolsbee: Latest tariff threat could delay rate cuts https://t.co/BZ3BO9CwwM
CHICAGO FED’S GOOLSBEE SAYS NEW TARIFF THREATS COULD DELAY RATE CUTS, SPARK INFLATION CONCERNS; INSISTS FED WILL REMAIN INDEPENDENT DESPITE POLITICAL PRESSURE — WSJ $SPY
Federal Reserve's Austan Goolsbee warns that new tariff threats could delay reductions in interest rates.