Chicago Fed President: Inflation Data Better Than Expected, Policy Uncertainty Lingering
Chicago Federal Reserve Bank President Austan Goolsbee commented on Friday's inflation data, expressing cautious optimism about inflation's trajectory towards the Fed's 2% target. He reiterated the Fed's expectation of a lower policy rate in the next 12 to 18 months.
However, Goolsbee highlighted "policy uncertainty" stemming from potential tariffs on trading partners such as Mexico and Canada. He emphasized that such measures could impact prices and complicate the Fed's monetary policy decisions.
"If it affects prices, it affects us," Goolsbee told CNBC. "Our signal is getting a little muddied, when things are happening that drive up prices."