Navigating the delicate balance between inflation and employment, the Federal Reserve faces ongoing challenges due to trade policy uncertainties. President of the Chicago Fed, Austan Goolsbee, has highlighted this challenge, emphasizing that uncertain trade policies can hinder investment decisions and potentially push the economy toward a stagnant period with rising prices – stagflation. Goolsbee explains that tariffs have significantly impacted the U.S. economy by increasing import costs, putting pressure on businesses to pause their investments and causing disruptions in supply chains. These uncertainties are prompting the Fed to consider postponing interest rate decisions, as they may lack clarity regarding the long-term effects of trade policy instability.