Federal Reserve Warns of Economic Risks from Tariff-Related Disruptions

According to BlockBeats, Federal Reserve official Barr stated that while the U.S. economy remains fundamentally strong, there are concerns about potential disruptions in the supply chain due to tariffs, which could slow economic growth and increase inflation. Barr highlighted the critical role of small businesses in the supply chain and the broader economy. He noted that trade policies have cast uncertainty over the economic outlook. For small businesses, potential supply chain disruptions are particularly severe, partly because they have fewer opportunities to access credit. Barr added that small businesses often provide specialized inputs that are not easily sourced elsewhere, and their closure could further disrupt supply chains.