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Federal Reserve Goolsbee: Tariffs may trigger a double contraction in consumption and investment "

Internet reports that the Federal Reserve Goolsbee said that if consumers stop spending due to uncertainty or companies suspend investment, the economy will fall into chaos. In theory, the impact of tariffs on prices should be temporary, but considering factors such as retaliatory tariffs and taxation of intermediate goods, the actual impact may be more lasting. Goolsbee emphasized that although surveys showed business and consumer confidence "almost bottomed out," physical data still showed solid U.S. economic growth. He maintained his previous judgment and expected interest rates to be cut in the next 12 to 18 months. (Jin Shi)

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