There is a lot of dust in the air. Chicago’s Federal Reserve Chairman is concerned with inflation – markets
The American Federal Reserve (Fed) is no longer on the “Golden Road” that traveled in 2023 and 2024, and he now finds himself in a “different separation” with “a lot of dust in the air”. The warning to the head of the Federal Reserve in Chicago, Austan Golsby, arrived in an interview with the Financial Times.
Goodsbee believes that The interest rates will be “much lower” in 12 to 18 monthsand But the next reduction should take longer than expected at first due to economic uncertainty. “In my view, when there is dust in the air, waiting for seeing the best way, when facing uncertainty,” he said, however, that “waiting for a vision” is not free and has a cost. “
The Great Warning brand, for the federal reserve leader, will be concerns about inflation – at a time when investigations at the University of Michigan revealed that the long inflation expectations of families have reached the highest level since 1993.
“If we start seeing long -term inflation expectations, based on the market, to behave the way these inquiries have acted in the past two months, I would like to see this as a big sign of anxiety“Goolsbee Financial Times said.
Last week, and The US Central Bank said it was so Expect that your favorite inflation index, the price index with expenditures in PC (PCE), will increase by 2.7 % this yearAgainst 2.5 % expectations in December.
Goodsbee considers that the three weeks to the next six will be “a critical period (where) Let’s solve a series of political uncertainty“. “When I talk to the executives here in the Michigan state, they often refer to April 2 as a major point of uncertainty,” said Chicago, head of the Federal Reserve at Chicago,. After, they do not know whether there are exemptions, because it will be applied to the auto sector, especially because of its merging with Canada and Mexico. “
