Federal Reserve governor Michael Barr and New York Fed president John Williams warned Friday that President Trump's tariffs are expected to lead to higher inflation, elevated unemployment, and slower economic growth this year.

(Reuters) -U.S. President Donald Trump's trade policies will likely lift inflation, lower growth, and raise unemployment later this year, Federal Reserve Governor Michael Barr said, leaving policymakers with a potentially tricky decision on which problem to fight.

Federal Reserve Gov. Michael Barr said global supply chain disruptions and inflation caused by tariffs could weigh heaviest on small businesses, especially those with little access to credit.