Fed's Goolsbee: Latest tariff threats may delay rate cut process

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ChainCatcher news, Jin10 reports that Chicago Federal Reserve President Goolsbee stated that the latest tariff measures announced by President Trump have once again muddied the inflation outlook, making it more difficult for him to support the interest rate cut policy strongly advocated by Trump. Gursby revealed in an interview on Friday that concerns about tariffs driving up prices have significantly eased over the past few months due to Trump suspending the high bilateral tariff plan proposed in April, which had originally paved the way for the Federal Reserve to cut interest rates again soon. However, the latest round of tariffs—including a 35% tariff on certain Canadian imports starting August 1 and a 50% tariff on Brazilian goods—could reignite inflation worries, forcing the Federal Reserve to maintain a wait-and-see stance until the situation becomes clearer. "I hope the business community won't respond with 'this puts us back in the situation of April 3,' but it is still difficult to determine the extent of the impact right now," he admitted.

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