Fed's Barr: tariffs to boost inflation, slow growth later this year

"The size and scope of the recent tariff increases are without modern precedent, we don’t know their final form, and it is too soon to know how they will affect the economy," Barr said on Friday in remarks prepared for delivery to the Central Bank of Iceland. "In my view, higher tariffs could lead to disruption to global supply chains and create persistent upward pressure on inflation," he said, noting that it will take time for businesses to reroute distribution networks. "I am equally concerned that tariffs will lead to higher unemployment as the economy slows," Barr said.