2 April 2025 | Dollar

Chicago Fed President warns of pullback in US consumer spending caused by import tariffs

Chicago Fed President warns of pullback in US consumer spending caused by import tariffs

Federal Reserve Bank (Fed) of Chicago President Austan Goolsbee warns that the US administration’s import tariffs could lead to a decline in consumer spending and investment. 

The official noted the possibility of duties having a long-lasting impact on prices in the US. This could be fueled by retaliatory tariffs. Besides, some levies could hit so-called intermediate goods used in local manufacturing. Heightened uncertainty around Donald Trump's trade policies has also made businesses and consumers more cautious.

At the same time, Chicago Fed President still expects the US central bank to cut rates over the next 12–18 months. He thinks the country’s economic growth remains solid, despite weakening survey measures of consumers and businesses.

Trump is to announce sweeping tariffs on April 2. Most Fed officials say monetary policy currently allows the regulator to wait and see the impact of import duties on the country's economy. 

Elena Dorokhina MarketCheese
Period: 14.11.2026 Expectation: 3500 pips
Sell Bitcoin with $75,000 in view
30 October 2026 81
Period: 14.11.2026 Expectation: 150 pips
Go short on SPX down to $7,500
30 October 2026 101
Brent sell
Period: 29.11.2026 Expectation: 450 pips
Brent crude sell-off targets $105
29 October 2026 77
Period: 12.11.2026 Expectation: 28000 pips
Go long on NVIDIA stock up to $243
29 October 2026 82
Period: 28.11.2026 Expectation: 130 pips
Invest in SPX with 7,850 in view
28 October 2026 111
Period: 28.11.2026 Expectation: 4200 pips
Selling EURUSD down to 1.07000
28 October 2026 126
Go to forecasts