Fed's Barr: Supply chain disruptions could lead to higher inflation

Fed Chair Barr said the U.S. economy is on solid footing, but he warned that tariff-related supply chain disruptions could lead to slower growth and higher inflation. Barr stressed the importance of small businesses and their role in supply chains and the broader economy. He said trade policy has clouded the outlook and added to uncertainty. Potential supply chain disruptions are "particularly severe" for small businesses, in part because they have less access to credit. Small businesses often provide specialized inputs that are not easily available elsewhere, and business closures could further disrupt supply chains, he added.