Trump tariffs ‘without modern precedent’: US Fed official

WASHINGTON - The size of

US President Donald Trump’s recent tariff announcements

are “without modern precedent,” a senior Federal Reserve official said on May 9, voicing concern the measures will slow growth and stoke inflation.

“In my view, higher tariffs could lead to disruption to global supply chains and create persistent upward pressure on inflation,” Fed Governor Michael Barr said during a speech in Reykjavik, Iceland, according to prepared remarks.

Mr Barr, the former Fed vice-chair for supervision, said the recent measures could snarl global trade networks, and warned that some suppliers may not be nimble enough to adapt in time.

He did not refer to the US president by name, instead referring to the “uncertainty” kicked up by the new trade policies he is responsible for.

“The size and scope of the recent tariff increases are without modern precedent,” Mr Barr said. “We don’t know their final form, and it is too soon to know how they will affect the economy.”

But, he added, the bank’s monetary policy was currently “in a good position to adjust as conditions unfold”.

The US central bank this week announced it would

extend a recent pause in rate cuts

as it looks to maintain stable prices and maximum employment, leaving its benchmark lending rate at between 4.25 and 4.50 per cent. AFP