Federal Reserve official Barr warns tariffs may lead to inflation and rise in unemployment.

Federal Reserve board member Michael Barr said that the trade policies of the Trump administration could lead to sustained inflation pressures and increased unemployment, putting the Federal Reserve in a difficult position. However, he pointed out that interest rates are still favorable until the impact of tariffs on the economy becomes clearer. Barr echoed Federal Reserve Chairman Powell's statement, who earlier this week said that the U.S. economy remains strong, allowing officials to patiently wait for more information on tariffs and their effects.