Federal Reserve Board member Barr: Supply chain disruptions related to tariffs may increase inflation.

Federal Reserve Board member Barr stated that the foundation of the USA economy is solid, but he warned that supply chain disruptions related to tariffs could lead to a slowdown in economic growth and rising inflation. Barr emphasized the importance of small businesses and their role in the supply chain and the overall economy. He noted that trade policies have made the outlook uncertain and increased unpredictability. He pointed out that potential supply chain disruptions are 'especially serious' for small businesses, partly because they have fewer channels for obtaining Crediting. He added that small businesses often provide some irreplaceable specialized inputs, and their closures could further disrupt the supply chain.