financetom
Economy
financetom
/
Economy
/
Fed's Goolsbee: Data still noisy as Fed waits to understand tariff impacts
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Fed's Goolsbee: Data still noisy as Fed waits to understand tariff impacts
May 26, 2025 7:31 AM

WASHINGTON (Reuters) -Data showing temperate consumer inflation in April does not necessarily reflect the impact of rising U.S. import tariffs, with the Federal Reserve still needing more data to discern the direction of prices and the economy, Chicago Fed President Austan Goolsbee said on Wednesday.

Consumer prices rose a less-than-expected 2.3% in April, for the smallest annual increase in four years, but the headline number was held down by falling food prices, which can be volatile from month to month.

Excluding food and energy, so-called "core" inflation was 2.8%, the same as in March.

"There are moments of a lot of dust in the air," Goolsbee said on NPR's Morning Edition radio show. "We've got a bunch of noise ... We're trying to figure out the through line."

The Fed has held interest rates steady since December, and is likely to keep doing so as officials wait to see how the Trump administration's tariff increases and ongoing trade negotiations play out.

"We continue to get these numbers that at least suggest that it's going okay," said Goolsbee, a current voter on the Fed committee that sets interest rates.

"It's just, I think, not realistic to expect businesses or central banks to be jumping to conclusions about long-term things when you've got so much short-term variability. That's just a very difficult environment."

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
April Chicago Fed National Activity Index Falls as Expected
April Chicago Fed National Activity Index Falls as Expected
May 26, 2025
08:36 AM EDT, 05/22/2025 (MT Newswires) -- The Chicago Federal Reserve Bank's monthly National Activity Index fell to a reading of minus 0.25 in April from 0.03 in March, as expected in survey of analysts compiled by Bloomberg as of 7:40 am ET. The three-month moving average remained at 0.05. Of the 85 individual indicators, 30 made positive contributions to...
US real earnings stalled across age, income groups in past year, study shows
US real earnings stalled across age, income groups in past year, study shows
May 26, 2025
WASHINGTON (Reuters) -Inflation-adjusted earnings stalled across age and income groups over the past year, while the sometimes rapid wage gains of the COVID-19 era have left workers as a whole little better off five years later, a JPMorganChase Institute study concluded. The study, released on Thursday, said after-tax take-home pay, adjusted for inflation that soared above 9% in 2022, grew...
Fed's Waller sees path to rate cuts later this year, Fox Business reports
Fed's Waller sees path to rate cuts later this year, Fox Business reports
May 26, 2025
NEW YORK (Reuters) -U.S. Federal Reserve Governor Christopher Waller said on Thursday he still sees a path to rate cuts later this year, in comments that observed market pricing levels show investors are worried current Republican budget plans are not doing enough to deal with the deficit. Waller, who was interviewed on Fox Business's television channel, said the key to...
US weekly jobless claims fall as labor market remains stable
US weekly jobless claims fall as labor market remains stable
May 26, 2025
WASHINGTON (Reuters) -The number of Americans filing new applications for unemployment benefits dropped last week, suggesting the economy maintained a steady pace of job growth in May. Initial claims for state unemployment benefits fell 2,000 to a seasonally adjusted 227,000 for the week ended May 17, the Labor Department said on Thursday. Economists polled by Reuters had forecast 230,000 claims...
Copyright 2023-2025 - www.financetom.com All Rights Reserved