Fed Official Warns of Economic Disruption Amid Uncertainty

Federal Reserve official Lael Brainard has raised concerns about potential economic disruption in the U.S., citing a looming risk of consumer spending slowdown and business investment decline. Despite this growing uncertainty, Goolsbee believes that robust growth remains evident in the current economic landscape, even though confidence surveys reveal near-record lows for both businesses and consumers. He suggests that while tariffs on goods could have temporary pricing effects, factors like retaliatory tariffs and taxes on intermediate goods may lead to more prolonged impacts. In his assessment, interest rate cuts are likely within the next 12 to 18 months.