Federal Reserve's Goolsbee: Tariffs may trigger a dual contraction in consumption and investment

ChainCatcher news, according to Jinshi reports, Federal Reserve's Goolsbee stated that if consumers stop spending due to uncertainty or businesses pause investment, the economy will fall into chaos. Theoretically, the impact of tariffs on prices should be temporary, but considering factors such as retaliatory tariffs and taxes on intermediate goods, the actual impact may be more lasting.

Goolsbee emphasized that although surveys show that business and consumer confidence has "almost hit rock bottom," the real data still indicates that the U.S. economy is growing steadily. He maintains his previous judgment, expecting interest rate cuts within the next 12 to 18 months.