Minneapolis Fed Neel Kashkari said that tariffs by President Donald Trump could worsen long-term inflation if global trading partners react more strongly.
Such actions will cause problems and other countries will also impose an increasing response and trigger all inflationary concerns.
Previously, Donald Trump's first term had set his policy by igniting a trade war with China when he imposed several import duties on the Asian giant's products and they responded by imposing their own tariffs on the United States (US).
This term, Trump proposes to impose wider tariffs on all countries and China will be raised as high as 60%.
Economists, Wall Street analysts and industry leaders have repeatedly expressed concern about the inflationary impact of such a hard-line trade approach, especially as inflation has only just begun to ease from its pandemic-era peaks.
Kashkari said the Fed has been doing its best all year to lower inflation and the 2% target is still on track.
On Thursday last week, the Fed cut rates twice in a row in its efforts to ease monetary policy at a time when inflation is on target.
He said the Fed would likely go ahead with its next rate cut in December but it would depend on the state of current economic data and political concerns.
