Fed member Austan Goolsbee has made a significant assessment of recent economic development.
Goolsbee said that inflation data has been very positive up to now, but the direct impact of tariffs is surprisingly limited. However, he said he doesn’t know if this situation will continue in the next month or two.
“Despite all the ‘dust’ from all these tariffs, I still think interest rates could fall in the next 12-18 months,” Ghoulsby said. He also said that the Fed’s double goals of price stability and maximum employment look pretty good if current volatility is overcome.
Goolsbee, who took a cautious stance on the impact of tariffs on inflation, said he was hesitant to say the impact was temporary. He added that the latest personal consumption expenditure (PCE) inflation data could be “last traces” of the period before the impact of tariffs.
Speaking at the same time, Chairman Fed Powell declined to comment on his economic and interest rate expectations.
*This is not investment advice.
