Fed's Goolsbee Says New Tariffs May Be Pausing Decision-Making

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00:00We've gone on a roller coaster coming into before Liberation Day and April 2nd in the

00:08announcements of the tariffs. I would characterize the economy as going pretty solid. And with

00:17prices and inflation coming down to our 2% target, GDP growth pretty strong and stable,

00:25and the job market looking, what I would characterize as full employment. And so I

00:32thought rates are going to come down in that environment. And I was saying, I thought they

00:37had a fair bit of ways to go. When they announced the tariffs at those kind of rates, especially in

00:47manufacturing, also in agriculture, it was the hair on fire kind of moment where a lot of folks in

00:56various manufacturing industries were saying, we can't, if these are the rates, we're not going to

01:02survive. We're going to see a real closing out. A lot of the rates came down. They signed some deals.

01:11They exempted some things. If it was USMCA compliant, it didn't apply, etc. They got a

01:18little more comfortable with maybe it won't be as bad as it seemed on day one. And that's still for a

01:27lot of industries where their head is. Now, it seems like we're going into a new wave of tariff

01:36announcements on building materials, on lumber, on cabinets, as well as maybe heavy trucks. And we've

01:50seen a kind of a ramping back up of some of the other metals inputs. So when I'm out talking to

01:58people, it feels like they're just wary. They're uncertain. And we might be going back into that.

02:03Everybody just put your pencils down kind of a moment where you just wait until you figure

02:09out where it's going to be.