Fed official warns against recession risk

The United States' latest tariff policy is a major shock to the economy, a US Federal Reserve official said on Monday, predicting that the risk of recession exceeds the inflation risk, echoing recent warnings by economists.

Speaking at the Certified Financial Analysts Society of St. Louis, Fed Governor Christopher Waller said the new tariff policy is one of the biggest shocks to affect the economy in many decades, which will likely cause the growth to "slow to a crawl" and bring the unemployment rate near 5 percent next year.

Over the past few weeks, the administration of President Donald Trump has unveiled a series of sweeping tariff moves that have roiled global markets, imposing additional tariffs of at least 10 percent on all foreign-made goods.