According to online reports, Richmond Fed Chairman Balkin said that Trump's tariffs may push up inflation and unemployment, posing huge challenges to the Federal Reserve. The price shock from tariffs could trigger a "cage showdown" between frustrated consumers and providers of goods and services who "truly believe" that costs must be passed on. Obviously, part of the impact of tariffs will be transmitted to prices, triggering inflation. Balkin also warned that part of the impact will also be felt in the job market. Higher prices may reduce demand and reduce sales. If companies don't raise prices, profit margins will fall; if companies are to start improving operational efficiency, it means adding more people.