Concerns Over Tariffs' Inflationary Impact

Federal Reserve Governor Lisa Cook expressed concerns about the potential inflationary effects of tariffs imposed by the Trump administration. Speaking in Pittsburgh, Cook highlighted how these tariffs, while initially raising prices for specific goods, could have a broader inflationary impact over time.

Impact on Steel, Aluminum, and Beyond

Cook pointed to the rising costs in the steel and aluminum industries as a prime example. These increases have already led to higher manufacturing prices, which could eventually affect a wide range of industries, especially the motor vehicle sector. This includes not just new and used cars but also related services such as rentals and insurance.

Businesses Passing Costs to Consumers

"Businesses are increasingly passing the costs of tariffs onto consumers," Cook noted. She emphasized the current period of economic uncertainty but reassured that the Federal Reserve's monetary policy is prepared to respond to these challenges.