Fed's Goolsbee: If tariffs don't lead to high inflation, rate cuts will resume

Odaily News Fed's Goolsbee said the lack of significant inflationary pressures since Trump imposed tariffs on April 2 could allow the Fed to resume cutting interest rates. He recalled that the Fed expected to lower interest rates at the beginning of the year and paused its rate cuts, mainly because of policy uncertainty.
Goolsbee said: If we don't see inflation from these tariff increases, then in my opinion, we never left what I call the golden path before April 2. He compared tariffs to throwing a lot of dust in the air, so it's hard to see if you're still on the path. If there's no dust in the air, then I think we should continue (rate cuts). (Jinshi)