In an interview with CNBC on Monday, the president of the Bank of the Federal Reserve (FED) of Chicago, Austan Goolsbee, said that short -term inflation expectations have increased and added that it is very important that long -term inflation expectations do not rise.
Key points
“Fed needs to look where things will be throughout the year, tariffs are an input.”
“Productivity growth has been strong, we want to understand if tariffs affect that.”
“The impact of tariffs on macroeconomics could be modest.”
“We need to wait to find out what to do.”
“It would be difficult if both sides of the Fed mandate fail; it is also the magnitude and how long it lasts.”
“We don’t know what the impact on the supply chain will be.”
“We want to be a firm hand.”
Market reaction
The US dollar (USD) is maintained under a persistent sales pressure after these comments. At the time of publication, the USD index was lowering 1.2% in the day to 98.20.
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.
