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 >
Powell: Bank regulators should repropose Basel plan
Powell: Bank regulators should repropose Basel plan
Jul 9, 2024
(Reuters) - U.S. Federal Reserve Chair Jerome Powell said Tuesday that is the strongly held view of the Fed board that bank regulators should seek additional feedback on a contentious effort to hike bank capital, a move that had been sought by the industry. Powell said the Fed, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency...
US Treasury's Yellen: Biden is 'extremely effective' in meetings in which she takes part
US Treasury's Yellen: Biden is 'extremely effective' in meetings in which she takes part
Jul 9, 2024
WASHINGTON (Reuters) - U.S. Treasury Secretary Janet Yellen on Tuesday, asked whether she had seen any evidence of mental or cognitive decline in President Joe Biden, said the president was extremely effective in meetings in which she participated. Yellen told members of the House Financial Services she was not aware of any discussions among cabinet secretaries on invoking the 25th...
INSTANT VIEW-Fed's Powell:
INSTANT VIEW-Fed's Powell: "More good data" will "strengthen" case for rate cut
Jul 9, 2024
(Reuters) - Inflation remains above the U.S. Federal Reserve's 2% target, but has been improving in recent months and more good data would strengthen the case for central bank interest rate cuts, Fed Chair Jerome Powell said on Tuesday in congressional testimony. In comments that appeared to show increasing faith that inflation will return to the Fed's target, a requirement...
Incoming Q1 Data Didn't Support Greater Confidence Inflation Moving Toward 2%, Fed Chair Powell Says
Incoming Q1 Data Didn't Support Greater Confidence Inflation Moving Toward 2%, Fed Chair Powell Says
Jul 9, 2024
10:35 AM EDT, 07/09/2024 (MT Newswires) -- Incoming data for Q1 didn't support greater confidence that inflation is moving sustainably toward 2%, Federal Reserve Chair Jerome Powell said Tuesday in a prepared testimony submitted to the US Congress. Powell, who is testifying Tuesday before the Senate Banking Committee to discuss his semiannual monetary policy report, said in the prepared testimony...
Copyright 2023-2026 - www.financetom.com All Rights Reserved