Americans could soon face higher inflation as businesses pass along tariff costs, Fed official says

Americans could see inflation tick higher in 2025 as businesses start to pass on the cost of the Trump administration's tariffs to consumers through price hikes, Beth Hammack, president and CEO of the Federal Reserve Bank of Cleveland, told CBS News' Kelly O'Grady in an interview.

So far this year, inflation has remained relatively muted despite President Trump's wide-ranging tariffs, partially because many businesses stockpiled goods and manufacturing parts ahead of the import duties' implementation. Some business facing higher tariffs also chose to hold off on passing cost increases onto consumers as they awaited more clarity around where tariff rates would settle. Additionally, the Trump administration instituted numerous pauses on threatened levies, delaying cost increases for bus