One of the Federal Reserve's most dovish policymakers is taking a sharp shift toward a more hawkish posture, warning that new trade tariffs and supply chain disruptions could force the Fed into a difficult position—either slowing down planned rate cuts or reconsidering whether to cut at all.

There’s a growing sense among some inside the Federal Reserve that President Donald Trump’s willingness to use tariffs as a tool to accomplish his administration’s aims will end up boosting inflation,

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.

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

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

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.