Fed’s Goolsbee: Rate Cuts Will Resume If Tariffs Do Not Lead to High Inflation

Odaily Planet Daily News: Federal Reserve’s Goolsbee stated that since Trump imposed tariffs on April 2, there has been a lack of significant inflationary pressure, which may allow the Fed to resume rate cuts. He recalled that the Fed had expected to lower interest rates at the beginning of the year but paused rate cuts mainly due to policy uncertainty.

Goolsbee said: If we do not see inflation resulting from these tariff increases, then in my view, we have never strayed from what I call the “golden path” before April 2. He compared the tariffs to throwing a lot of dust into the air, making it hard to see whether you are still on the path. If there is no dust in the air, then I believe we should proceed with (rate cuts).