Chicago Fed President sees slower pace of rate cuts due to US economic uncertainty

According to the president of the Federal Reserve Bank of Chicago Austan Goolsbee, the US interest rate will be slightly lower in 12–18 months. The official does not expect the cost of borrowing to drop soon due to US economic uncertainty.

Goolsbee believes that rising US inflation may become a serious cause for the Federal Reserve's concern when making monetary policy decisions. At the March 18–19 meeting, the US central bank left the rate steady at 4.25–4.5%. However, officials made it clear that they plan to deliver more easing later this year.

Fed Chair Jerome Powell says US President Donald Trump's trade policies will delay the regulator's progress in reducing inflation this year. However, according to the central bank's forecasts, the impact of tariffs on consumer prices will be short-lived.