11 April | Dollar

Chicago Fed President calls for wait-and-see approach to monetary policy

Chicago Fed President calls for wait-and-see approach to monetary policy

According to Chicago Fed President Austan Goolsbee, high levels of uncertainty sparked by aggressive US tariffs make the case for the regulator's wait-and-see approach to monetary policy.

The duties imposed by President Donald Trump—even if currently suspended—continue to significantly impact the US economy. As the policymaker notes, there's no generic playbook for how the Federal Reserve should respond to such tariff hikes. He estimates these measures are creating a stagflationary shock. Still, Goolsbee suggests that if the situation improves, US interest rates could be lower in 12–18 months.

Financial markets are under strain, with the pressure extending beyond US assets to global securities, Chicago Fed President believes. Still, he emphasizes that long-term US Treasuries remain a reliable safe haven in turbulent times.

Anton Volkov MarketCheese
Period: 14.05.2025 Expectation: 1650 pips
Technical and fundamental background supports AUDCAD
07 May 2025 79
Elena_Dorokhina
Elena_Dorokhina

Listed among the best MarketCheese authors
1st in the segment "Currencies"
Period: 08.05.2025 Expectation: 550 pips
EURUSD to drop to 1.13000
07 May 2025 54
Period: 13.05.2025 Expectation: 240 pips
Brent crude price rebound to continue up to 65
07 May 2025 71
Period: 14.05.2025 Expectation: 1000 pips
Buying GBPUSD amid trade talks and weaker dollar with target at 1.344
07 May 2025 34
Period: 12.05.2025 Expectation: 1500 pips
USDJPY rebound fades ahead of Fed meeting
06 May 2025 71
Period: 30.05.2025 Expectation: 975 pips
Natural gas maintains upside potential within megaphone pattern
06 May 2025 75
Go to forecasts