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Federal Reserve Board Governor Barr: Its too early to know how tariffs will affect the economy.On May 9, Federal Reserve Chairman Barr said that Trumps trade policies could push up inflation, reduce economic growth and push up unemployment later this year, which may leave policymakers with a difficult decision about which problem to address. "The scale and scope of the recent tariff increases are unprecedented, we dont know their final form, and its too early to say how they will affect the economy," Barr said. But he said the risks are obvious. "In my opinion, higher tariffs could lead to disruptions in global supply chains and put continued upward pressure on inflation," he said. He also noted that it takes time for companies to adjust their distribution networks. Some suppliers, especially small businesses, may not be able to adapt quickly enough and may go out of business, which exacerbates supply chain chaos. "I am equally concerned that tariffs will lead to higher unemployment as the economy slows," Barr said. "So if we see both rising inflation and rising unemployment at the same time, the Fed may be in trouble."Federal Reserve Board Governor Barr: Artificial intelligence may also raise the neutral interest rate.Federal Reserve Board Governor Barr: As of the first quarter, the path of gradual but uneven decline in inflation to 2% is still ongoing, and the economy is resilient.Federal Reserve Board Governor Barr: It is currently impossible to determine what impact tariffs will have on the economy.

US Fed Considering CBDC, But Not Decided To Pursue or Implement

Cory Russell

Apr 15, 2022 10:40

The Federal Reserve of the United States has said that it is exploring creating a central bank digital currency (CBDC). The central bank has not yet determined whether or not to pursue or deploy a digital dollar, according to the central bank.


The Fed, on the other hand, has already issued a CBDC report emphasizing the use of stablecoins like USD Coin and Tether; the statement on Thursday is the most important to date.

Fed Exploring CBDC “Benefits and Risks”

In a tweet today, the authority said that it is looking into the possible advantages and hazards of CBDCs.


It has also produced a series of CBDC FAQs, explaining why it is contemplating it now. Given technology improvements ushering in a rush of new private-sector financial goods and services, the Fed believes it is the "appropriate moment" to examine a digital dollar.


CBDCs, according to the bank, might provide a variety of advantages. A digital dollar, for example, might give consumers and businesses a simple, electronic version of central bank money, as well as a platform for entrepreneurs to develop new financial goods and services and promote quicker and cheaper payments.

Lawmakers Critical of Fed’s Progress

US legislators questioned Fed Chair Jerome Powell in January on the pace and status of the Fed's CBDC review, which was set to be released last summer.


Fed Governor Christopher Waller stated last month that he isn't sure that a CBDC is necessary for retail consumers in particular.


"Are we actually in need of it?" That is something I have yet to be persuaded of. It's not to say I couldn't be, but I've never seen that on a retail CBDC."


Tom Emmer, a Minnesota politician, sponsored a measure in January to restrict the Fed from exercising unilateral authority over the US CBDC. The lawmaker wants the central bank to be prohibited from issuing digital dollars to people directly.

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