Chicago Federal Reserve President Austan Goolsbee warned on Wednesday that ignoring the potential inflationary impact of tariffs would be a mistake, citing the COVID-19 pandemic experience where supply chain disruptions drove up inflation.

Federal Reserve officials take great pains not to comment on fiscal policy, but the looming threat from tariffs is forcing their hand.

Fed officials appear to have a unified message this week on the question of how they should react to President Donald Trump’s new tariffs: We’re taking our time.

Chicago Federal Reserve President Austan Goolsbee said inflation data released on Friday was a bit better than expected and gives him comfort that inflation is on path to the 2% target, adding that he still expects the U.

Trade wars could lead to supply-chain disruptions and an inflation spike similar to the early pandemic, Austan Goolsbee said.