Federal Reserve Officials Warn of Rising Inflation, Unemployment Amid Tariffs

Recent analyses by key Federal Reserve officials indicate that tariffs imposed by President Trump may adversely impact the U.S. economy, leading to higher inflation, increased unemployment, and slower growth. John Williams, President of the New York Federal Reserve, warned that inflation could rise to 4% and GDP growth might decline to around 1% due to these trade policies. Dallas Fed President Lorie Logan echoed these concerns, emphasizing the potential for tariff-induced inflation to destabilize long-term price expectations and worsen economic conditions. The escalating trade conflict, particularly with China and Europe retaliating with their own tariffs, has also heightened market volatility, prompting fears of a recession. As a result, financial markets are reacting negatively, with significant declines in stock futures and rising volatility indicators. The Federal Reserve's upcoming policy decisions are under close scrutiny as the market anticipates potential interest rate cuts to mitigate these economic challenges.