Federal Reserve's Barr: Tariffs push up inflation, slowing economy, Fed fears trouble

According to a report by Jin Shi, Federal Reserve Secretary Barr stated that Trump's trade policies may push up inflation, lower economic growth, and increase unemployment later this year, which could leave policymakers facing a tricky decision on which issue to address. Barr said, "The scale and scope of the recent tariff hikes are unprecedented, and we don't know their ultimate form. It's too early to say how they will affect the economy." However, he said that the risks are obvious. In my opinion, higher tariffs could lead to disruptions in global supply chains and create sustained upward pressure on inflation, "he said. He also pointed out that companies need time to adjust their distribution networks. Some suppliers, especially small businesses, may not be able to adapt quickly enough and may go bankrupt, exacerbating the chaos in the supply chain. Barr said, "I am equally concerned that as the economy slows down, tariffs will lead to an increase in unemployment. Therefore, if we see both inflation and unemployment rising at the same time, the Federal Reserve may be in trouble