Fed's Goolsbee: Impact of tariffs on macro economy could be modest
|In an interview with CNBC on Monday, Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee noted that short-run inflation expectations are up and added that it's very important for long-run inflation expectations not to rise.
Key takeaways
"Fed needs to look to where things will be through the year, tariffs are one input."
"Productivity growth has been strong, want to understand if tariffs affect that."
"Impact of tariffs on macro economy could be modest."
"We need to wait it out to figure out what to do."
"It would be difficult if both sides of Fed's mandate go wrong; it's also about magnitude and how long it lasts."
"We don't know what impact on supply chain will be."
"We want to be a steady hand."
"Fed chair is most important person at the table, their opinion carries a lot of weight."
"Fed independence is critically importance."
"Inflation rate is higher in countries where there is political interference."
Market reaction
The US Dollar (USD) stays under persistent selling pressure following these comments. At the time of press, the USD Index was down 1.2% on the day at 98.20.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.