Goolsbee of the Federal Reserve Bank of Chicago points to tariffs, keeping options open for rate cuts ahead of the September meeting.

Chicago Fed President Austin Goolsbee expressed his concerns on Tuesday, indicating that tariffs have a definitive impact and do not determine the direction of the U.S. economy. He spoke ahead of the Federal Open Market Committee (FOMC) meeting on September 16-17, leaving the door open for policy adjustments as soon as if the labor picture quiets. He stated, "If the labor market deteriorates, then a retreat in valuations is inevitable," emphasizing that any proposal would require "a string of moderate data."