Trade wars could lead to supply-chain disruptions and an inflation spike similar to the early pandemic, Austan Goolsbee said.

New trade tariffs and supply chain disruptions could force the Federal Reserve into a difficult position, policymaker says.

Federal Reserve Bank of Chicago President Austan Goolsbee believes it would be a "mistake" to gloss over the economic impacts and escalating trade wars tied to President Trump's tariff threats, in a speech on Wednesday.