Federal Reserve member from Chicago: No hasty decisions regarding interest rates!

The President of the Federal Reserve Bank of Chicago, Austan Goolsbee, emphasized that the economic uncertainty caused by the new tariffs has led many companies to hesitate in making major investment decisions, especially regarding capital spending. He noted a clear shift toward caution and anticipation among business contacts, with companies preferring to wait for clarity before committing to new projects.

Goolsbee pointed out that the U.S. economy still enjoys a significant degree of strength at the moment, but underscored the importance of taking a consistent and long-term approach to dealing with economic developments. He added that the Federal Reserve needs to carefully assess the impact of the tariffs, considering their permanence and effect on consumers, before making any monetary policy decisions.

Regarding the impact of the tariffs, the U.S. Federal Reserve member indicated that imports account for only 11% of the Gross Domestic Product, meaning that one-time tariffs, without retaliatory actions, may have a limited effect on the economy. However, the larger the shock from these tariffs, the more complicated the Federal Reserve's response will be, necessitating caution in making any hasty decisions.

Concerning inflation, the head of the Federal Reserve in Chicago confirmed that he does not adopt a hardline or lenient stance; instead, he relies on analyzing economic data when evaluating the current situation. He added that he still believes the U.S. economy has sufficient resilience, noting that if progress continues in controlling inflation, a gradual decrease in inflation rates is expected over the next 12 to 18 months.

In conclusion, the Federal Reserve official stressed that economic uncertainty requires waiting until the picture is fully clear, reinforcing the need for further careful analysis before making significant decisions affecting the overall economic trajectory.

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