24 March
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.
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