Economic Stability Meets Uncertainty

Federal Reserve Vice Chair for Supervision Michael Barr delivered a cautiously optimistic message about the U.S. economy, stating it remains on a "solid footing" with inflation trends aligning towards the central bank's 2% target. However, Barr issued a stark warning about the potential for recent shifts in trade policy to "cloud" the economic horizon.

Impact on Small Businesses and Supply Chains

During his pre-recorded address at the 2025 Northeast / Mid-Atlantic Small Business Credit Symposium, held at the Federal Reserve Bank of New York, Barr emphasized the disproportionate effect these economic shocks could have on small businesses. He highlighted risks of price surges stemming from disrupted supply chains or businesses struggling to adapt to new policy landscapes.