Fed's Goolsbee: Tariff-Induced Slowdown Will Take Time

Chicago Federal Reserve Bank President Austan Goolsbee Tuesday said higher inflation from tariffs could become evident quickly, but he said it would take longer to see a tariff-induced economic slowdown.

With business CEOs signaling they plan to pass on to consumers some if not all of the increased costs from tariffs, higher prices could show up in inflation data in a month, or "certainly within a couple of months if it's going to affect prices in a significant way," Goolsbee said at an event held by the Corridor Business Journal in Cedar Rapids, Iowa.

If the higher costs then lead to an economic slowdown, "that one won't show up in the data for a while."