In an interview with CNBC on Friday, the president of the Bank of the Federal Reserve (FED) of Chicago, Austan Goolsbee, said they have to wait for things to clarify when there is a lot of uncertainty.
Key points
“There has been a turning determined towards anxiety and waiting in capital spending among business contacts.”
“The current conditions are perhaps a shock for the economy depending on how long they last.”
“Fed needs to be a firm hand and have a long -term vision on the economy.”
“Markets want fast information, but that is not realistic at this time.”
“There is still a lot of strength in the economy at this time.”
“Unemployment and inflation reflect progress towards the dual mandate.”
“Before judging how monetary policy reacts to tariffs, the Fed needs to know how long the tariffs last, the possible retaliation, and the impact on consumers.”
“Imports are only 11% of GDP, so the unique tariffs that are not followed by reprisals are more likely to be transitory.”
“The larger and more similar to supply shocks, the more difficult it will be for the Fed to ignore them.”
“The answer to what it means transitory this time is whether tariffs apply to intermediate goods, cause reprisals and other factors.”
Market reaction
These comments failed to cause a notable reaction in the US dollar index. At the time of publication, the index had risen 0.12% in the day to 103.92.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
