Economic Buzz: Fed's Goolsbee expects central bank to eventually lower short-term rates once the uncertainty surrounding tariff policies is resolved

Chicago Federal Reserve Bank President Austan Goolsbee said on Monday he continues to think the U.S. central bank will be able to lower short-term borrowing costs after the dirt in the air of uncertainty from tariff policies gets cleared up. Goolsbee further stated his ongoing belief that if the economy remains stable and tariffs do not prove to be as severe as announced on April 2, the Fed?s policy rate is likely to be notably lower within the next 15 months. So far, he said, the labor market looks strong, and recent inflation readings, with the personal consumption expenditure price index rising just 2.1% in April from a year earlier, have been pretty good. But the inflation figures so far probably don't incorporate much impact from the tariffs, Goolsbee added.

Powered by Commodity Insights