Federal Reserve Governor Gursby: If tariffs do not lead to high inflation, interest rate cuts will be restored.

Federal Reserve's Gursbey said that since Trump imposed tariffs on April 2, there has been a lack of obvious inflation pressure, which may allow the Fed to cut interest rates again. He recalled that the Federal Reserve had expected to lower interest rates at the beginning of the year, and paused the rate cut mainly due to policy uncertainty. Gursbey said, "If we do not see inflation caused by these tariff increases, then in my view, we have never left the 'golden path' I mentioned before April 2." He likened tariffs to "throwing a lot of dust into the air, so it is difficult to see if you are still on the road". "If there is no dust in the air, then I think we should continue."