Fed Official Warns of Potential Inflation Rise Due to Tariffs

Federal Reserve Bank of St. Louis President Alberto Musalem expressed concerns on Thursday about the potential for recent tariffs to increase inflation in the near future. Despite current inflation expectations remaining stable, Musalem highlighted the possibility of a shift due to new trade measures.

During his discussion on the economic outlook, Musalem acknowledged some positive trends in inflation but emphasized the uncertainty surrounding the impact of tariffs. "High corporate profit margins might absorb some of the tariff effects," he noted, but also warned that the inflationary consequences could range from being temporary to more lasting.