Top Federal Reserve official says it would be ‘mistake’ to ignore Donald Trump’s tariffs

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A top Federal Reserve official warned it would be “a mistake” to underestimate the potential for Donald Trump’s planned tariffs to push up prices.

Austan Goolsbee, president of the Chicago Fed, on Wednesday said central banks’ tendency to follow “pure economic theory” and ignore supply shocks such as tariffs was “dangerous”.

The US faced a “series” of…