Federal Reserve Barkin: Not all companies can raise prices due to tariffs

Not all companies can raise prices to offset the cost of the tariffs, Federal Reserve Balkin said, warning that after years of inflation, consumer tolerance is low. "What I hear from retailers is that consumers are tight," Balkin said. "That means it's not as easy as you think you're going to pass prices on to consumers." Balkin still thinks the U.S. economy is in good shape. He added that consumer spending and business investment remain solid. He noted that while indicators of consumer confidence are noticeably weak, that hasn't yet weighed on spending. Balkin said he's considering whether the tariffs will slow economic growth to the point of dampening inflation. That's the experience of 2008, he said, but there have been other times when it hasn't happened.