The Federal Reserve's Goolsbee: If tariffs do not lead to high inflation, interest rate cuts will resume.

On June 24, the Federal Reserve’s Goolsbee said that since Trump imposed tariffs on April 2, there is a lack of significant inflationary pressures, which may allow the Federal Reserve to cut interest rates again. He recalled that the Fed was expected to lower interest rates at the beginning of the year and paused them, mainly because of policy uncertainty. “If we don’t see the inflation caused by these tariff increases, it seems to me that we never left what I call the golden road before April 2,” Goolsbee said. He likened tariffs to “throwing a lot of dust into the air, so it’s hard to see if you’re still on your way.” “If there’s no dust in the air, then I think we should go ahead (with rate cuts).”