CoinVoice has learned that according to a report by Jin Shi Data, Chicago Fed President Goolsbee stated that the latest tariff measures announced by President Trump once again muddle the inflation outlook, making it harder for him to support Trump's strong push for interest rate cuts.
Goolsbee revealed in an interview on Friday that concerns about tariffs driving up prices have significantly eased in recent months due to Trump's suspension of the high bilateral tariff plan proposed in April. This originally paved the way for the Federal Reserve to cut interest 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 worries, forcing the Federal Reserve to remain on the sidelines until the situation becomes clearer. 'I hope the business community does not respond with, 'This puts us back in the situation we were in on April 3,' but it's hard to say how significant the impact will be at this point,' he admitted. [Original link]