More Fed officials highlight risks of Trump's tariff policy to US economy — Yahoo Finance

Federal Reserve Governor Michael Barr and New York Fed President John Williams both warned late last week that Trump's policies are negatively impacting the nation's economy. From their perspective, heightened global trade tensions may fuel inflation, slow GDP growth, and tighten the labor market in the US.

Under such circumstances, the Fed is facing a tough decision: fight rising consumer prices or support the US economy and increase employment figures. Jerome Powell, head of the central bank, stated that the regulator will maintain a “wait-and-see approach” until the effects of Trump’s tariff plans become clearer.

At the Fed's May meeting, interest rates remained unchanged within the same range of 4.25–4.50% as at the end of 2024. Policymakers acknowledged growing risks of persistent inflation and rising unemployment, despite relatively stable GDP growth.

Meanwhile, Donald Trump has repeatedly pressured the American central bank to ease monetary policy, Yahoo Finance reports.