Federal Reserve's Goolsbee: Latest tariff threats may delay interest rate cuts

ChainCatcher news, Jinshi Data reported that Chicago Federal Reserve President Goolsbee stated that the latest tariff measures announced by President Trump have once again muddied the inflation outlook, making it more difficult for him to support the interest rate cuts that Trump strongly advocates.

In an interview on Friday, Goolsbee revealed that in recent months, concerns about tariffs driving up prices had significantly eased due to Trump's suspension of the high bilateral tariff plan proposed in April, which had originally paved the way for the Federal Reserve to cut rates again soon. However, the latest round of tariffs— including a 35% tariff on certain Canadian imports starting August 1 and a 50% tariff on Brazilian goods—could reignite inflation concerns, forcing the Federal Reserve to maintain a wait-and-see stance until the situation becomes clearer. "I hope the business community doesn't respond with 'this puts us back in the situation of April 3,' but it's hard to say how significant the impact will be at this point," he admitted.