US stocks drop as economic uncertainty rises

US stocks are falling in premarket trading as investors react to comments from Chicago Federal Reserve President Austan Goolsbee. Futures show the Dow industrial average is down by 320 points, the S&P index is down 45 points, and the NASDAQ index has dropped by 190 points. Treasury yields are also declining, with the 2-year yield at 3.931% and the 10-year yield at 4.206%. During an interview on CNBC, Goolsbee discussed the rising uncertainty in the economy, particularly affecting capital spending. He emphasized the importance of a careful and steady approach from the Federal Reserve amid these challenges. Although he noted some resilience in the economy, with positive data on inflation and unemployment, he warned that too much delay in rate cuts could lead to complications. Goolsbee reiterated the Fed's commitment to maintaining 2% inflation and highlighted potential risks such as stagflation. He indicated that if inflation expectations rise, the Fed may have to readjust its approach. While Goolsbee expressed a cautious optimism and preference for patience in policy decisions, he acknowledged that changes in the economic landscape could lead to different actions in the future.