By Michael S. Derby NEW YORK (Reuters) -Federal Reserve Bank of Chicago President Austan Goolsbee said Thursday high levels of uncertainty amid very aggressive trade tariffs argues for a wait-and-see approach to monetary policy,

Fed policymakers are likely to continue holding rates steady despite a cooler reading on inflation for the month of March, due to the risk that prices could pick back up in the coming months as more tariffs are absorbed.

Federal Reserve officials are prepared to hold their policy rate steady to minimize the risk that President Donald Trump’s tariffs trigger a persistent rise in inflation, even if the labor market softens further.