Federal Reserve Bank of Chicago President Austan Goolsbee warns that tariffs could complicate the Fed's fight against inflation.
Fed eral Reserve ( Fed ) Bank of Chicago President Austan Goolsbee highlighted the challenges central banks face in accurately predicting the ripple effects of economic policies, particularly tariffs, on inflation. In a speech on Wednesday, Goolsbee emphasized that assessing the precise impact of tariffs on prices is a complex task, potentially hindering the Fed 's efforts to curb inflation and maintain price stability.
Goolsbee underscored the importance of distinguishing between inflation driven by an overheating economy and that stemming from factors like tariffs. He stated that if inflation persists or accelerates, the Fed would need to carefully analyze the underlying causes to determine the appropriate policy response. While inflation has shown signs of cooling and is approaching the Fed's 2% target, Goolsbee cautioned against complacency, particularly in light of potential supply chain disruptions caused by tariffs.Drawing parallels to the COVID-19 pandemic, which exposed the vulnerabilities of global supply chains, Goolsbee stressed the need to consider the potential consequences of new threats, such as tariffs. He argued that overlooking these risks could prove detrimental to the economy. Opinions remain divided on the extent to which tariffs would translate into higher consumer prices, with some suggesting that suppliers might absorb the costs rather than passing them on to consumers. However, Goolsbee noted that this time's tariffs could be more extensive and substantial than those imposed in 2018, potentially leading to a larger and more enduring impact on prices and economic activity
FED TARIFFS INFLATION ECONOMY SUPPLY CHAINS
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canada Imposes Retaliatory Tariffs on US Goods in Response to Trump's Fentanyl TariffCanadian Prime Minister Justin Trudeau announced retaliatory tariffs against the US in response to President Donald Trump's tariffs on Canadian imports. Trudeau stated that Canada will be imposing 25% tariffs on $155 billion worth of American goods, with immediate tariffs on $30 billion worth of goods starting Tuesday and further tariffs on $125 billion worth of products in 21 days. These tariffs come after Trump implemented 25% tariffs on Canadian goods imported to the US, citing efforts to curb the fentanyl crisis.
Read more »
Trump's Tariffs Pose Threat to US Companies and ConsumersPresident Trump's proposed tariffs on major trading partners like Mexico, Canada, and China are expected to negatively impact US growth and inflation. The levies will hurt US companies reliant on imports and manufacturing from these countries, particularly in sectors like fashion, automobiles, and alcoholic beverages.
Read more »
Inflation Eases Slightly, Trump Tariffs Pose RiskThe Federal Reserve's preferred inflation gauge rose modestly in December, while some underlying price pressures eased. President Trump's tariff threats on Canada and Mexico add uncertainty to the outlook.
Read more »
U.S. Tariffs Pose Major Market Risk in 2025, Says Norway's Wealth Fund ChiefNicolai Tangen, CEO of Norges Bank Investment Management, the world's largest sovereign wealth fund, identifies U.S. tariffs as a key driver of inflation and a significant market risk in 2025. He also highlights other risks such as prolonged high interest rates, government debt, and geopolitical instability. Tangen emphasizes the growing concentration of U.S. equities in large-cap tech firms as a top concern.
Read more »
Columbus Gas Prices Dip, But Tariffs Pose Potential ThreatGasBuddy finds average gas price in Columbus at $3.03 per gallon, down from last week. While prices are currently down, potential tariffs on Canadian and Mexican crude oil imports could impact future costs.
Read more »
Canada Threatens Retaliatory Tariffs on US Goods if Trump Imposes 25% TariffsCanada is considering retaliatory tariffs on American products if President-elect Donald Trump follows through on his threat to impose 25% tariffs on all Canadian goods.
Read more »