Fed/Goolsbee: Whether tariffs will lead to persistent inflation remains an open question.

Chicago Fed President Austan Goolsbee stated that it remains an open question for the Federal Reserve whether the Trump administration's tariff plans will lead to persistent inflation. He emphasized that taxes on intermediate goods, retaliatory measures from other countries, and various factors influence whether the central bank will need to respond.

"If tariffs are applied to intermediate goods, how much of the cost increases will be passed on to consumers? How much can consumers absorb?" Goolsbee pointed out that this is the fundamental question. He also added that the Fed needs more time to "figure out" the outcomes of President Donald Trump's trade actions.