The Federal Reserve's Goolsbee: Tariffs have not triggered inflationary pressures, rate cuts may restart.

On June 24, the Federal Reserve’s Goolsbee stated that since Trump’s tariffs were imposed on April 2, there has been a lack of significant inflationary pressure, which may allow the Federal Reserve to cut interest rates again. He recalled that the Federal Reserve had expected to lower interest rates at the beginning of the year and had paused rate cuts mainly due to policy uncertainty.

Goolsbee stated: “If we don’t see the inflation caused by these tariff hikes, then in my view, we have never left the golden path I mentioned before April 2nd.” He compared the tariffs to “throwing a lot of dust into the air, making it hard to see if you’re still on the path.” “If there’s no dust in the air, then I think we should proceed with the drop in interest rates.”