Chicago Fed President Austan Goolsbee struck a decidedly cautious tone on Thursday, warning that the barrage of aggressive US trade tariffs has created too much uncertainty for central bankers to commit to their next move. Speaking to the Economic Club of New York, he argued for a "wait-and-see" approach, stressing that the bar for policy shifts—whether hikes, cuts, or holds—is now higher as officials gauge how the economy absorbs the shock of soaring import costs. Though the Trump administration has dialled back some tariffs, Goolsbee noted their lingering bite could distort growth in ways monetary policy struggles to offset.Amid wild swings in Treasury markets, the Fed official took solace in the resilience of a recent 10-year note auction, calling it proofs that US debt remains the world’s "safest asset" in times of stress. Yet his reassurance came with a caveat: the financial pain from trade tensions isn’t confined to American shores. As yields gyrate and risk appetite wavers, Goolsbee’s message was clear—the Fed won’t be rushed into action while the trade war’s fallout remains so dangerously opaque.
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