Fed official Goolsbee: don't ignore risk of tariffs pushing up inflation

Gold Finance reports that Federal Reserve Bank of Chicago President Austan Goolsbee said sustained, large-scale tariff hikes could once again cause supply chain disruptions and push up inflation.Goolsbee warned against assuming that tariffs don't trigger inflation in a prepared speech for an event in Detroit. He listed several lessons learned from the epidemic, including that supply-side disturbances, including supply chains, are the most important driver of inflation and lead to overheating of the economy during and after a new crown epidemic shock. “If we see inflation rising or progress stagnating in 2025, then the Fed will be in the difficult position of trying to figure out whether the source of inflation is an overheating economy or tariffs,” Goolsbee said, adding, ”That distinction is important in determining when or even if the Fed should act is critical.”