Chicago Fed President “Tariff pressure may be a factor in delaying interest rate cuts”

Austan Goolsbee, President of the Federal Reserve Bank of Chicago, warned that the recently heightened tariff issue could affect the schedule for the Federal Reserve's rate cuts. In remarks released on July 12 (local time), he said, “The recent tariff threat could put upward pressure on prices and could delay rate cuts.”

These comments came as President Donald Trump has announced high tariffs on major trading partners, including the European Union (EU) and Mexico, indicating that external risks are once again emerging as a key variable in monetary policy decisions.

In the market, there was a strong belief that the Fed could move to cut rates in the second half of the year, but forecasts that concern about price increases due to tariffs could become a reality and slow down the pace of policy change are spreading. Goolsbee's remarks are also seen as a signal that inflation concerns within the Fed have not yet completely disappeared.