Global Trade Conflicts May Escalate Inflation, Says Fed's Goolsbee

In a recent statement, Federal Reserve Bank of Chicago President Austan Goolsbee highlighted the potential for a significant global trade conflict to drive inflation upwards. Amidst strong US economic indicators, Goolsbee pointed out the unusual coexistence of robust data and pervasive uncertainty.

Public Anxiety and Economic Monitoring

Goolsbee mentioned that while the Fed is closely watching the economic data, there's an increasing public concern over the direction of trade policies. He specifically warned that the imposition of steep tariffs, especially if other countries retaliate, could lead to higher prices for consumers.

The Path Forward

He also discussed the possibility of a global shift in trade behavior, suggesting that if countries can avoid imposing heavy tariffs on each other, the adverse effects on inflation could be mitigated. "If this evolves into a worldwide era of trade," Goolsbee remarked, "and [countries] refrain from imposing significant tariffs on one another, it won't have this adverse effect."