Barr from the Fed Warns Supply Chain Disruptions May Drive Inflation Higher

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Federal Reserve Governor Michael Barr recently shared some insights about the economy. While he believes we’re on a stable path, he raised concerns about how tariffs are messing with supply chains, potentially leading to slower growth and rising prices.

Barr highlighted that small businesses are particularly vulnerable in this scenario. They play a crucial role in our economy and supply chains but often lack the financial resources to weather these disruptions. He pointed out that many of these businesses offer unique products or services that can’t be easily replaced,making them even more susceptible to setbacks.

“The pandemic taught us just how meaningful these disruptions can be,” Barr noted during his speech at a New York Fed event on may 15. “If we face similar challenges again, it could meen sluggish growth and inflation creeping up.” This is something we should all keep an eye on as it affects not just business owners but consumers too.