Federal Reserve's Goolsbee: The implementation of tariffs far exceeds model predictions, and it is unclear how to respond to negative supply shocks

ChainCatcher news, according to Jinshi reports, Chicago Federal Reserve President Goolsbee stated that the implementation of tariffs has far exceeded previous model predictions. The Federal Reserve must take a longer-term view of the issue, rather than being as volatile as the stock market.

There are internal disagreements within the Federal Reserve regarding how quickly or to what extent the increase in tariffs will be passed on to consumers, which could lead to supplier bankruptcies. It remains unclear how the Federal Reserve will respond to negative supply shocks.