Trump's tariffs may delay Fed rate cuts! Federal Reserve officials: If inflation improves, interest rates will drop significantly in the next 12-18 months.

Austan Goolsbee, president of the Federal Reserve Bank of Chicago who has voting rights at this year's FOMC meeting, said that the Fed may delay the schedule of interest rate adjustments due to US President Donald Trump's renewed tariff storm, saying: "As we wait for a clear message, I have a slightly higher threshold for action in any direction." (Synopsis: Ball: Real interest rates may remain "high" in the future, inflation volatility is more violent, bitcoin stands back to $103,000, S&P 500 returns to before Trump's tariff war) (Background supplement: US CPI hit a four-year low in April, Fed interest rate cut probability increased, bitcoin knocked $105,000, U.S. stocks rose) US President Donald Trump (Donald Trump) issued a major tariff warning yesterday (23), against the technology giant Apple (Apple) and the European Union to put forward a high tariff threat. Trump said that if Apple's iPhone is not made in the United States, it will impose a 25% tariff; At the same time, he also proposed a 50% tariff on imports from the EU from June 1. The move has caused market turmoil, and investors are worried that uncertainty in the global supply chain and trade environment will increase again. Fed officials: Trump tariffs may delay the timing of interest rate adjustments Against this background, Austan Goolsbee, president of the Federal Reserve Bank of Chicago, who has voting rights at this year's FOMC meeting, commented on Trump's tariff policy, pointing out that these threats complicate the Fed's monetary policy and may delay the timing of interest rate adjustments. In an interview with CNBC's Squawk Box, the central banker said that while he still expects interest rates to trend downward in the long term, the Fed prefers to stay on the sidelines for the time being as it assesses the impact of trade policy changes on inflation and employment. He emphasized: Anything is possible. But I feel that while we wait for a clear message, the bar for me to move in any direction is slightly higher. Goursby further warned that Trump's tariffs could pose a risk of "stagflation," in which slower economic growth is accompanied by rising inflation, which is the most intractable challenge for central banks. "In the long run, if the tariffs they impose have a stagnant inflationary effect, that's the worst-case scenario for the central bank," he said. So I think we need to see how much price influences. I know people hate inflation. Interest rates could fall significantly over the next 12 to 18 months While concerns have been expressed about short-term trade policy, Goolsby also said of the Fed's future monetary policy: "I don't like to tie our hands a little bit at the next meeting, or even in the next six, eight, ten meetings." He reviewed the economic environment leading up to April 2, when the U.S. was at relatively stable full employment and inflation was returning toward the 2% target. "If we can maintain those conditions, I think interest rates could fall significantly in the next 12 to 18 months," he said. According to CME Group's FedWatch tool, the market currently believes that in June and July, the Fed will continue to maintain the current interest rate level unchanged, and if there is a possible rate cut, it will start as early as September, with a 47.9% chance. Related stories Non-farm employment is too strong! Fed sounding board: June interest rate cut opportunities greatly reduced, Goldman Sachs, Barclays changed their words "to wait for July" Trump choked Bauer "want to fire you faster than cut interest rates", Fed independence affected will impact the market? Fed Powell shouted "no rush to cut interest rates", the US economy is still very strong; Trump responded: Too slow to move "Trump tariffs or delay Fed rate cut!" Fed official: If inflation improves, interest rates will fall sharply in the next 12-18 months" This article was first published in BlockTempo's "Dynamic Trends - The Most Influential Blockchain News Media".