According to Golden Finance, Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said that the ongoing and large-scale tariff increase may cause supply chain disturbances again and drive up inflation. Goolsbee warned in a speech prepared for the event held in Detroit not to assume that tariffs do not trigger inflation. He listed several lessons learned from the epidemic, where supply-side disturbances, including supply chains, are the most important drivers of inflation and have led to the overheating of the economy during and after the COVID-19 impact. “If we see inflation rising or progress stagnant in 2025, the Fed will be in a difficult situation trying to figure out whether the source of inflation is an overheating or tariffs,” Goolsbee said. “This distinction is for determining when or even if the Fed should It is crucial to take action.”