Federal Reserve Governor Bostic: Tariff-related supply chain disruptions could push up inflation

Federal Reserve Board member Powell stated that the economic foundation of the United States is solid, but he warned that disruptions in the supply chain related to tariffs could lead to a slowdown in economic growth and an increase in inflation. Powell emphasized the importance of small businesses and their role in the supply chain and overall economy. He stated that trade policies have made the outlook uncertain and worsened uncertainty. He pointed out that potential disruptions in the supply chain are "particularly serious" for small businesses, partly because they have fewer channels to obtain credit. He added that small businesses often provide specialized inputs that are difficult to replace, and their closure could further disrupt the supply chain.