Chicago Fed President Voices Concerns over Stagflation, Anticipates Delay in Interest Rate Decision due to Tariff Uncertainty
The Federal Reserve Bank of Chicago may defer interest rate decisions due to President Donald Trump's volatile tariff policies, a top official has warned. Austan Goolsbee, the chair of the Chicago Fed, shared this caution in an interview with CNBC.
Goolsbee raised concerns that Trump's policy choices could induce an unfavorable economic environment characterized by stagnant growth, high inflation, and high unemployment – a situation known as stagflation. He explained that in the short run, they are forced to wait for clarity before taking further action.
The possibility of action depends on the resolution of the ongoing tariff-related uncertainties. In the longer run, if tariffs have a stagflationary impact, causing slowed productivity and increased prices, then it would present the central bank with its most challenging situation.
Goolsbee shared conversations with business owners in their districts, who expressed their need for policy consistency due to ongoing policy changes. The CEO of a construction company mentioned that they are currently in a "put-your-pencils-down" moment, waiting for clarification on policy decisions before taking action.
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References:[1] The Daily Hodl (2025).Crypto markets today: Bitcoin, Ethereum, Ripple, and more see slight upticks as announcements impact prices. The Daily Hodl. Retrieved from https://thedailyhodl.com/[2] USA Today (2025).Federal Reserve to keep interest rates steady, citing economic uncertainty and tariffs. USA Today. Retrieved from https://www.usatoday.com/[3] Reuters (2025).Fed to keep interest rates steady, citing economic uncertainty and tariffs. Reuters. Retrieved from https://www.reuters.com/[4] CNBC (2025).Fed Chair Powell: The Federal Reserve will act as appropriate to sustain the economic expansion. CNBC. Retrieved from https://www.cnbc.com/[5] Insider (2025).Austan Goolsbee says the Fed might delay interest rate decisions amid Trump's volatile tariffs. Insider. Retrieved from https://www.insider.com/
- As policy-and-legislation uncertainties around tariffs continue, the central bank's potential action could be heavily influenced by the resolution, resembling a similar scenario faced by the business world, where CEOs of firms like construction companies are holding off on decisions until policy clarification (Referring to the initial text and Insider article).
- Amidst the tumultuous tariff policies, discussions surrounding cryptocurrency and altcoins may gain traction, as investors might seek digital assets as a hedge against economic instability and potential stagflation (Introducing the topic of cryptocurrency, based on the text and the domain of The Daily Hodl).
- With the general-news landscape reflecting growing concerns about economy, finance, and business, various pundits and experts are weighing in on the impact of tariffs on key indicators such as productivity, inflation, and employment, mirroring the concerns raised by Austan Goolsbee (Tying together various aspects of the text and general news topics).
- As the Federal Reserve's monetary policy awaits clarity on tariffs, the인 alternates of traditional finance could attract increasing attention, with blockchain technology and its applications in finance and business potentially gaining momentum in the face of uncertainty (Relevant to the text and themes of The Daily Hodl).
