Fed can cut rates if tariff inflation remains limited: Goolsbee

Chicago Federal Reserve President Austin Goolsbee expects the US central bank to cut interest rates if the impact of tariffs on inflation remains limited.

Speaking at an event in Milwaukee on Monday, Goolsbee stated that inflation data over the past three months, at least so far, shows no significant inflationary impact from tariffs, noting that this is a surprising development.

He explained that this means that, in his view, the US economy has never departed from what he calls the "golden path" it was on before the tariffs were imposed.

This situation suggests that the burden of additional tariff costs in some sectors is being shared among producers, suppliers, and consumers, he explained.

The monetary policymakers simply want to determine whether the situation will stabilize at this point, or whether future data may show an evolution in the inflation path due to tariffs.