Open the newsletter to watch the White House for free
Your guide to what the American elections mean 2024 for Washington and the world
Supreme Federal Reserve officials have warned that it would be a “mistake” to reduce the possibility of Donald Trump's tariff planned to raise prices.
Austan Golsby, Chairman of the Federal Reserve in Chicago, said on Wednesday that the tendency of central banks to follow the “pure economic theory” and ignored the shocks of the show, such as the customs tariff was “dangerous”.
Golsby said the United States faced a “chain” of challenges facing the supply chain, including strikes and natural disasters. the economy It also faced “threat A big tariff He added that the possibility of an escalating trade war.
He said: “These threats are not on the scale of what happened during the epidemic, but passing through its potential consequences will be a mistake.”
Comments come from a senior official at the Federal Reserve, and a member of the Central Bank Prices Committee, a few days after the president's threat to impose tariff fees on 25 percent on two of the largest trade partners in the United States, Mexico and Canada.
Trump said on Monday afternoon that he was postponing the drawings on Canada and Mexico until March 1, but it struck China with definitions of 10 percent, prompting Beijing to announce its customs tariffs on some American imports.
Goolsbee's comments with Federal Reserve Chairman Jay Powell, who said last week that those referred to prices will need to “wait and see” effect Definitions Before determining how they affect the interest rate decisions.
By following the decision to keep interest rates in the range of 4.25 percent to 4.5 percent, Powell said: “We do not know what the tariff (ED), we do not know how much, how much, or how many countries, we do not know about revenge, we do not know how it will be transferred through the economy For consumers. This is really a seen.
However, most economists from the private sector expect the customs tariffs to be guaranteed, and the expectations of the price of the Federal Reserve Prices this year have decreased significantly since the fall as price growth remained higher than the central bank's goal.
Goodsbee said that the “overwhelming” lesson from the epidemic is that central bankers should not be ignored Shock on the display sideSaying that these were “the most important engines of inflation over the past five years.”
“We have seen at the times of Kofid that the more complicated the supply chain, the more it takes its administration.”
