Fed’s Barkin Warns Tariffs Will Add to Inflation but Less Than 2022

Richmond Federal Reserve President Thomas Barkin said on Tuesday that the latest round of U.S. tariffs is likely to generate additional upward pressure on consumer prices. Barkin added that, while inflation could pick up, he does not expect the tariff-related cost increases to rival the surge seen in 2022. His comments come three months after Washington imposed a 145% duty on a wide range of Chinese imports, a measure intended to encourage domestic production but one that economists warn may feed through to headline inflation. The remarks underscore the Federal Open Market Committee’s focus on whether trade policy will complicate efforts to return inflation to its 2% target ahead of its next meeting.