Fed’s Barkin acknowledges tariffs get passed through to consumers

Federal Reserve (Fed) Bank of Richmond President Thomas Barkin noted on Monday that tariff policies tend to result in higher prices for consumers, noting that the primary point of concern for businesses remains cloudy trade policy, not high interest rates.

Key highlights

A modest amount of tariff cost is paid by consumers.
The fog around the economy is starting to lift, but firms still cautious about new investment.
Business optimism has ticked back up.
Low unemployment, wage gains, stock prices, all supporting consumer spending.
Expect current low-hiring, low-firing labor market to continue, but it could break in either direction.