30 May
Richmond Fed warns Trump policies risk fueling inflation and reducing jobs
Federal Reserve Bank of Richmond President Tom Barkin believes that US President Donald Trump's tariffs risk fueling inflation and driving up unemployment.
He warned of potential price shocks that could spark tensions between frustrated consumers unwilling to pay more and suppliers insisting on necessary price hikes.
The official also highlighted the potential impact of Trump's trade policies on the US labor market. Barkin explained that higher prices could reduce demand and hurt sales, ultimately weighing on employment.
At its March meeting, the Federal Reserve kept interest rates steady in the 4.25% to 4.5% range. The US central bank also raised its unemployment forecast for this year while cutting its US GDP growth estimate to 1.7%.
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