Fed's Powell: Supply Chain Disruption Could Lead to Inflation Spike

BlockBeats News, May 16th, Federal Reserve's Powell stated that the U.S. economy is solid, but he warned that tariff-related supply chain disruptions could slow economic growth and increase inflation. Powell emphasized the importance of small businesses and their role in the supply chain and the overall economy.

He stated that trade policy has cast a shadow on the outlook, increasing uncertainty. For small businesses, potential supply chain disruptions are "particularly severe," partly because they have fewer opportunities to access credit. He added that small businesses often provide specialized inputs that are not easily obtained elsewhere, and business closures could further disrupt the supply chain. (FXStreet)