Squawk on the Street Apple’s Services Boost, Live: Chicago Fed President Goolsbee, Pres. Trump to Meet with Nvidia’s Huang 1/31/25
Jan 31, 2025
Austan Goolsbee, Chicago Fed President, shares keen insights on the latest PCE inflation data and its implications for monetary policy. He discusses the potential economic impact of President Trump's 25% tariffs on Mexican and Canadian goods, highlighting concerns over agricultural imports and trade dependencies. The conversation also touches on market dynamics, particularly Apple’s challenges in iPhone sales and its optimistic AI growth strategy. Goolsbee emphasizes the cautious optimism regarding inflation while navigating the complexities of interest rates.
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Tariff Impact on Consumers
- The U.S. heavily relies on Mexico and Canada for various goods, including food and auto parts.
- Tariffs could significantly impact U.S. consumers if companies pass on increased costs.
Inflation Outlook
- Inflation is on a path back to 2%, with progress in housing and services.
- Policy uncertainties like tariffs could impact prices, requiring careful evaluation.
Rate Cut Decision
- Goolsbee is open to a March rate cut but doesn't want to commit prematurely.
- He acknowledges a lack of consensus on the committee regarding the neutral rate.