Federal Reserve Bank of Chicago President Austan Goolsbee said a major global trade conflict could drive inflation higher. He pointed to a nearly unparalleled scenario in which strong US economic data exists alongside widespread uncertainty. Goolsbee said the Fed continues to monitor the data, but also hears growing public anxiety. He warned that steep tariffs, especially if met with countermeasures, could push up prices.

Goolsbee added that a global shift in trade behavior could also change how consumers respond. "If this evolves into a worldwide era of trade," he said, "and [countries] refrain from imposing significant tariffs on one another, it won't have this adverse effect."