Fed official Goolsbee: Do not ignore the risk of tariffs pushing up inflation

Golden Finance reported that Austan Goolsbee, president of the Federal Reserve Bank of Chicago, warned in a speech prepared for an event in Detroit that continued, large-scale imposition of tariffs could once again cause disruptions in the Supply Chain and drive up inflation. Goolsbee warned not to assume that tariffs would not trigger inflation. He listed several lessons learned from the epidemic, including that supply-side disruptions, including the Supply Chain, are the most important driver of inflation, leading to economic overheating during and after the impact of the new crown epidemic. 'If we see inflation rise or stagnate in 2025, the Fed will be in a difficult position trying to figure out whether the source of inflation is economic overheating or tariffs,' Goolsbee said. 'This distinction is crucial for determining when or even if the Fed should take action.'