Despite a strong U.S. economy, Federal Reserve official Barr highlights concerns about potential disruptions to the supply chain caused by tariffs. These disruptions could slow economic growth and contribute to inflation. He emphasized that small businesses play a vital role in the supply chain and broader economy. Trade policies are creating uncertainty regarding future economic prospects. For small businesses, these disruptions pose significant challenges due to limited access to credit opportunities. Moreover, their specialized input goods often remain unavailable from alternative sources, potentially causing further disruptions to the supply chain if they close down.