Small font size A Larger text size A Largest text size A

Fed's Goolsbee says tariffs have not had expected impact so far

BY Reuters | ECONOMIC | 06/23/25 01:44 PM EDT

NEW YORK (Reuters) -Federal Reserve Bank of Chicago President Austan Goolsbee said on Monday that thus far the surge in tariffs has had a more modest impact on the economy relative to what was expected.

"Somewhat surprisingly, thus far, the impact of tariffs has not been what people feared," Goolsbee said in public comments before the Milwaukee Business Journal mid-year outlook.

While it is still uncertain what tariffs will do to price pressures, "if we do not see inflation resulting from these tariff increases, then, in my mind, we never left what I was calling the golden path before April 2," which could well open the door to a push toward rate cuts, Goolsbee said.

(Reporting by Michael S. Derby; Editing by Chris Reese)

More Fixed Income News

JPMorgan's Dimon signals support for Kevin Warsh as Fed chair, FT reports BY Reuters |ECONOMIC 12/12/25 07:47 PM EST
JPMorgan's Dimon signals support for Kevin Warsh as Fed chair, FT reports BY Reuters |ECONOMIC 12/12/25 07:45 PM EST
AM Best Withdraws Credit Ratings of Southern General Insurance Company BY Business Wire |CORPORATE 12/12/25 04:24 PM EST
Fed's Daly says this week's rate cut was right move for Fed BY Reuters |ECONOMIC 12/12/25 04:07 PM EST

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article