Fed's Barr: Tariffs Drive Up Inflation and Slow Down Economy, Fed May Face Dilemma
According to ChainCatcher, as reported by Jinshi, Federal Reserve's Barr stated that Trump's trade policies might increase inflation, reduce economic growth, and raise unemployment later this year, which could present policymakers with a tricky decision on which issue to address.
Barr said, "The scale and scope of the recent tariff increases are unprecedented, and we don't know their final form. It's too early to say how they will impact the economy." However, he noted that the risks are evident. "In my view, higher tariffs could lead to disruptions in the global supply chain and exert sustained upward pressure on inflation," he stated.
He also pointed out that businesses need time to adjust their distribution networks. Some suppliers, especially small businesses, may not be able to adapt quickly enough and could go out of business, exacerbating supply chain chaos.
Barr said, "I am equally concerned that as the economy slows, tariffs will lead to a rise in unemployment." "Therefore, if we see both inflation and unemployment rising simultaneously, the Federal Reserve could be in a predicament."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
IWF ETF Declines 1.3%
This article was automatically generated using Dow Jones technology. Shares of iShares Russell 1000 Growth ETF dropped 1.3% to $127.11 Thursday on what proved to be an overall negative trading session for the U.S. stock market, with the S&P 500 Index falling 0.5% to 7,765.36. This was the fund's second consecutive day of losses. The fund's underlying index, the Russell 1000 Growth Index, fell 1.3%. The ETF's shares closed 2.1% below the 52-week high of $129.80 seen on October 6, 2026. Trading volume was 4,726,199, compared to the 65-day average trading volume of 3,881,173. As of October 7, the fund's net asset value totaled $128.81 per share. Data source: Dow Jones Market Data, FactSet (END) Dow Jones Newswires October 08, 2026 16:36 ET (20:36 GMT)
Trane CEO David Regnery disposes of 48,091 common shares worth $23,083,680
Trane Technologies Chair and CEO David S. Regnery sold 48,091 ordinary shares on Oct. 6 at USD 480. He also exercised stock options for 48,091 shares at USD 78.97 on the same day. Direct holdings fell to 96,951 ordinary shares following the transactions. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Trane Technologies plc published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001628280-26-065454), on October 08, 2026, and is solely responsible for the information contained therein.
Sector Update: Financial Stocks Advance Late Afternoon
04:06 PM EDT, 10/08/2026 (MT Newswires) -- Financial stocks were rising in late Thursday afternoon trading, with the NYSE Financial Index up 0.3% and the State Street Financial Select Sector SPDR ETF (XLF) adding 0.8%. The Philadelphia Housing Index climbed 1.2%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) increased 0.7%. Bitcoin (BTC-USD) was falling 1.9% to $81,730, and the yield for 10-year US Treasuries decreased 5 basis points to 5.23%. In economic news, the US central bank will likely have to raise interest rates further to bring inflation back to the 2% target faster, assuming there are no surprises in upcoming economic data, US Federal Reserve Governor Christopher Waller said Thursday. However, he said the timing of any additional policy tightening is flexible. Most Fed officials expected another rate hike by year-end to curb inflation, though they vowed to base their future policy decisions on fresh data, according to minutes from the central bank's September meeting released Wednesday. US initial jobless claims fell sequentially to 197,000 in the week ended Oct. 3 from an upwardly revised 199,000, compared with expectations for 200,000 in a Bloomberg-compiled survey. The four-week moving average fell to 198,000 after decreasing to 200,500 in the previous week, marking a fifth straight weekly decline. In sector news, Revolut CEO Nik Storonsky said he wants his company to hold a primary listing in the US if it chooses to pursue a public offering, Bloomberg reported, citing an interview with the CEO. In corporate news, Apollo Global Management's (APO) 5.7 billion British pounds ($7.53 billion) takeover of EasyJet is set for completion in early 2027, Bloomberg reported, citing EasyJet CEO Kenton Jarvis. Apollo shares were down 0.2%. Chime Financial (CHYM) shares rose 3.4% after Deutsche Bank upgraded the stock to buy from hold, with a price target of $35 per share. Goldman Sachs (GS) is preparing more than $500 million in equity awards to about 20 senior executives, Bloomberg reported. Ch
Crypto prices
More
