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Tariff Uncertainty Threatens Inflation, Says Fed President Goolsbee

10/1/2025

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Summary

Story summary

Austan Goolsbee, President of the Federal Reserve Bank of Chicago, cites tariff uncertainty in the district.
Trump announced tariffs on heavy trucks, lumber, and kitchen cabinets affecting Michigan and Iowa.
Goolsbee notes a stable labor market despite higher unemployment and slow hiring.
Tariffs may keep inflation above the 2% target, per the regulator.

History

Historical Context

The Smoot-Hawley Tariff Act, enacted on June 17, 1930, raised tariffs on over 20,000 goods to protect U.S. industries during the Great Depression. This led to retaliatory tariffs from other nations, causing U.S. exports to plummet by 61% by 1933. Today, similar tariff uncertainties echo the past, potentially hindering inflation control and labor market stability in states like Michigan and Iowa.

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Story summary

Austan Goolsbee, President of the Federal Reserve Bank of Chicago, cites tariff uncertainty in the district.
Trump announced tariffs on heavy trucks, lumber, and kitchen cabinets affecting Michigan and Iowa.
Goolsbee notes a stable labor market despite higher unemployment and slow hiring.
Tariffs may keep inflation above the 2% target, per the regulator.

1 / 2