Austan Goolsbee, President of the Federal Reserve Bank of Chicago, stated that President Trump's new tariff threats—including a 50% tariff on EU goods and a 25% tariff on iPhones not made in the U.S.—have further complicated monetary policy and are likely to delay any interest rate cuts by the Fed.

While he still believes that rates will decline in the long term, he emphasized the need for caution due to the risk of stagflation. Goolsbee remains optimistic that interest rates could fall significantly within the next 10 to 16 months, but he made no commitment to take action before the Fed’s next policy meeting on June 17–18.