Key Takeaways Federal Reserve officials speaking Friday emphasized the risks that tariffs imposed by the Trump administration will stoke inflation.The Fed, which manages the nation's monetary policy with the goal of keeping inflation and unemployment in check,

President Donald Trump's unfolding trade policy may curb U.S. productivity and possibly require higher interest rates to contain inflation in a less efficient economy, Federal Reserve governor Lisa Cook said on Friday.

The Fed operates with a dual mandate of keeping the labor market healthy while maintaining stable prices. At the moment, the labor market remains solid and inflation, while not at the 2% annual level the Fed desires, has come down significantly. That could change if some of the more aggressive Trump tariffs take effect.