Federal Reserve officials are being forced to address the potential impact of tariffs on inflation, with policymakers expressing concerns about the uncertainty surrounding President Trump’s trade policies. The looming threat of tariffs could lead the Fed to hold interest rates higher for longer if inflation rises significantly. While Fed Chair Jerome Powell has refrained from commenting on fiscal policy, other officials like Chicago Fed President Austan Goolsbee and Boston Fed President Susan Collins are closely monitoring the situation and evaluating the potential long-term effects of tariffs on the economy.
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