The Federal Reserve might have to sit tight for longer before changing interest rates, a top Fed official said.
Trump's new tariff threats could mean the Fed waits longer to cut interest rates
Chicago Fed President Austan Goolsbee said Trump’s latest trade war saber-rattling has muddled the central bank's leeway to slash rates
During a CNBC interview
on Friday, Chicago Federal Reserve President Austan Goolsbee said that
President Donald Trump’s latest tariff saber-rattling has muddled the
Fed’s leeway to slash interest rates.
- Goolsbee casts a vote in the Federal Open Market Committee, which sets interest rates that determine the cost of borrowing. The next FOMC meeting is being held in mid-June, and the Federal Reserve is expected to cut interest rates twice this year.
Trump shook financial markets again on Friday with a renewed threat to impose a 50% tariff on goods imported from the E.U. on June 1. “The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” he wrote in a social media post.
“Everything’s always on the table. But I feel like the bar for me is a
little higher for action in any direction while we’re waiting to get
some clarity,” Goolsbee said. He added he’d make up his mind once the
tariffs’ effect on prices is better understood.
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