Chicago Federal Reserve President Austan Goolsbee expressed continued concerns about the U.S. economic outlook, despite the recent pause in tariff increases between the United States and China. Goolsbee, speaking at a conference on Monday, emphasized the potential for higher consumer prices and slower economic growth stemming from lingering uncertainties surrounding U.S. trade policy.
"While the tariff truce is a welcome development, it doesn't eliminate the underlying risks," Goolsbee stated. "We still face the possibility of renewed trade tensions, which could negatively impact businesses and consumers."
Goolsbee also noted that inflation remains a concern, even with the recent moderation in some price indicators. He pointed to the potential for supply chain disruptions and increased import costs to push consumer prices higher.
"The Fed is committed to carefully monitoring these developments and adjusting monetary policy as needed to achieve our goals of price stability and full employment," Goolsbee concluded.
Analysts suggest Goolsbee's comments reflect a broader concern within the Federal Reserve regarding the long-term impact of trade policy on the U.S. economy. The Fed is expected to remain data-dependent in its approach to monetary policy, carefully weighing the risks and opportunities presented by the evolving global economic landscape.
Fed's Goolsbee Cautious Despite China Tariff Truce
Chicago Fed President Austan Goolsbee remains wary about the U.S. economy, even with the temporary pause in tariffs between the U.S. and China. Goolsbee highlighted the ongoing risk of rising consumer prices and a potential slowdown in economic growth. He cited persistent uncertainty surrounding the White House's trade policies as a key factor contributing to his cautious outlook. The Fed is closely monitoring these developments as it considers future monetary policy decisions.