Fed's Goolsbee says open question if tariffs will lead to persistent inflation

WASHINGTON, March 21 (Reuters) - It remains an open question for the U.S. Federal Reserve whether the Trump administration's tariff plans will lead to persistent inflation, with taxes on intermediate goods, retaliation by other nations, and other factors feeding into whether the central bank will have to react, Chicago Fed president Austan Goolsbee said on Friday.

"If they apply to intermediate goods, how much of the cost increases are going to be passed through to consumers? How much do executives think consumers will bear?...That is the fundamental question," Goolsbee said on CNBC, adding that the Fed needs more time to "sort through" how President Donald Trump's trade actions play out.