Fed’s Goolsbee: Rate cuts still possible if economy gets back on track

Austan Goolsbee stated that the current economic conditions remain uncertain due to significant changes in U.S. Trade policy. However, if the economy stabilizes, he anticipates interest rates could be reduced in the next 12 to 18 months.

The tariffs imposed by the previous administration have raised concerns about stagflation. Markets reacted to Trump’s tariff reversals, initially boosting global stocks, but U.S. Stocks later saw declines, indicating the volatile nature of current economic conditions.