Chicago Federal Reserve President Austan Goolsbee was like, “Yo, Trump’s new tariffs are making things hella complicated for us.” He mentioned in an interview with CNBC that the Fed is gonna have to hold off on making any changes to interest rates for now. Goolsbee believes that rates should be going down, but with all this trade policy drama, they gotta wait and see how it’s gonna affect stuff like inflation and employment. He was all, “Everything’s on the table, but I gotta be extra sure before we make any moves while we’re still in the dark.”
Trump dropped a bomb on the markets by calling for 50% tariffs on EU products starting June 1. And he’s talking about slapping a 25% tariff on iPhones that aren’t made in the U.S. Apple’s gonna feel that burn since they make most of their phones in China. The whole trade policy uncertainty is already freaking out the market, and now this? It’s like a rollercoaster ride for investors. Goolsbee is just trying to stay positive, hoping that the economy will bounce back strong in the long run. But with all these tariffs flying around, who knows what’s gonna happen next?
The Fed’s gonna have a meeting in June to discuss their economic and interest rate projections. Market peeps are expecting a couple of rate cuts this year, with the first one possibly happening in September. Goolsbee, being a cool dude, doesn’t wanna commit to any specific actions right now. He’s all about keeping his options open and not boxing himself in. The Fed’s current borrowing rate is chillin’ at 4.33%, but who knows where it’s gonna go from here. With all this tariff drama, it’s anyone’s guess what the future holds for interest rates.
