Fed’s Barr Says Supply Chain Disruptions Could Boost Inflation

Federal Reserve Governor Michael Barr said the economy is on solid ground, but warned tariff-related supply-chain disruptions could lead to lower growth and higher inflation.

Barr emphasized the importance of small businesses and their role in both supply chains and the overall economy. Trade policies, he said, have clouded the outlook and increased uncertainty.

WATCH: Federal Reserve Governor Michael Barr says the US economy is on solid ground, but warned tariff-related supply-chain disruptions could lead to lower growth and higher inflation during prerecorded opening remarks at the 2025 Northeast/Mid-Atlantic Small Business Credit Symposium.

Source: Bloomberg

He said potential supply chain disruptions are “particularly acute” for small businesses, in part because they have less access to credit. Small businesses often provide specialized inputs not easily sourced elsewhere, he added, and business failures could further disrupt supply chains.

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