Fed’s Goolsbee Warns: Latest Tariff Threats Could Delay Rate Cuts

According to a report by Jinse Finance, Chicago Fed President Austan Goolsbee stated that the latest tariff measures announced by President Trump have once again clouded the inflation outlook, making it more difficult for him to support the rate cut policy that Trump strongly advocates. In an interview on Friday, Goolsbee revealed that over the past few months, market concerns about tariffs driving up prices had eased significantly after Trump suspended 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 and a 50% tariff on Brazilian goods starting August 1—could reignite inflation worries, forcing the Fed to remain on hold until the situation becomes clearer. “I hope the business community won’t respond by saying ‘this puts us back in the situation of April 3,’ but it’s hard to judge the extent of the impact at this point,” he admitted.