Fed Goolsby: Threshold for recent rate cuts "a bit high"

Lowering borrowing costs is still possible over the next 10-16 months, but the threshold for a near-term rate cut is "slightly higher", the Federal Reserve said. "Everything is on the table, but I feel the bar for me to move in any direction is higher while we wait for some clarity," Mr. Goolsby said in an interview on Friday. Mr. Goolsby said he remained hopeful that "10 to 16 months from now, interest rates could be a little bit lower than they are today". Mr. Goolsby's interview comes after US President Donald Trump threatened to impose a 50 per cent tariff on imports from the European Union and warned of a 25 per cent tariff on iPhones as long as they are not made in the US. "Tariffs this high are really scary for the supply chain, and if there are new big announcements every week, month or day, they can't act until some of those issues are fixed," Mr. Goolsby said, referring to companies trying to make decisions. He added that business leaders in his district had expressed concerns about the need for consistency in tariffs and investments.