Fed's Goolsbee: We could see a direct tariff effect on prices within a month

Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee fell in step with the Fed policymaker crowd on Tuesday, admitting that while things look good right now, policy uncertainty remains elevated at the hands of President Trump's whiplash tariff policies, and the Fed is beginning to brace for economic fallout from widespread tariffs.

Key highlights

We have to wait and see if tariffs have a big or small inflation impact.

We could see a direct tariff effect on prices within a month.

Slowdown related to tariffs might not show up for a while in the data.

All indicators point to stable and full employment.

Concerns that the dollar will stop being the world reserve currency look overstated.

Escalating unbounded trade war could spiral up the inflation rate.

Jun 3, 2025

Fed's Cook: Tariffs could lead to stagflation environment

Federal Reserve (Fed) Board of Governors member Lisa D. Cook noted on Tuesday that although the US economy appears to be in a healthy place for the time being, the biggest economic threat to stability remains the Trump administration's trade policies.

WTI Crude Oil extends gains as Canada wildfires, geopolitical tensions, and a broadly weaker US Dollar support prices

West Texas Intermediate (WTI) Crude Oil prices continue their upward trajectory on Tuesday, marking the second day of gains. At the time of writing, WTI is hovering near Monday's high, trading around $63.06 per barrel, reflecting a nearly 2% increase on the day.