Federal Reserve Goolsbee warns: latest tariffs threaten to delay interest rate cuts
According to online reports, Chicago Fed President Goolsbee said that the latest tariff measures announced by US President Trump have once again confused the inflation outlook, which will make it more difficult for him to support Trump's strongly advocated interest rate cut policy. Goolsbee revealed in an interview on Friday that market concerns about tariffs pushing up prices have been greatly alleviated in the past few months as Trump suspended the high bilateral tariff plan proposed in April, which would have paved the way for the Federal Reserve to cut interest rates again soon. But the latest round of tariffs-including a 35% tariff on some Canadian imports and a 50% tariff on Brazilian goods starting August 1-could reignite inflation concerns and force the Fed to remain wait-and-see until the situation becomes clear. "I hope the business community will not report 'This puts us back where we were on April 3', but it is difficult to tell the extent of the impact." He said frankly.
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