"Uncertainty around trade policy is likely to reduce business investment going forward. At this time, firms do not know the ultimate level and incidence of tariffs or their duration," Cook said. "Higher costs of imported materials and components could also cause firms to delay or scale back

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,

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.