The Indicator from Planet Money What keeps a Fed president up at night
18 snips
Apr 10, 2025 
Austan Goolsbee, president of the Federal Reserve Bank of Chicago, discusses the unpredictable economic climate, likening it to weather patterns. He dives into the intricate relationship between tariffs and inflation, shedding light on how trade wars can lead to unexpected price changes. The conversation also explores the hesitance in investment decisions within tariff-impacted industries and addresses inflation anxiety post-COVID-19. Goolsbee emphasizes the importance of resilience and the overall strength of the economy amidst challenges.
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Tariff Impact on Inflation
- Tariffs' impact on inflation depends on retaliation and supply chain disruptions.
- These disruptions can create chain reactions, impacting various industries.
Auto Industry Uncertainty
- Austin Goolsbee consults with auto industry executives in his region.
- They express uncertainty-driven paralysis, halting investments due to unpredictable trade rules.
Stagflationary Shocks' Challenge to the Fed
- The Federal Reserve's dual mandate is price stabilization and maximizing employment.
- Stagflationary shocks, which increase prices and decrease employment, complicate this mandate.