03:49 PM EDT, 06/03/2025 (MT Newswires) -- Trade policy changes have begun to weigh on the US economy, Federal Reserve Governor Lisa Cook said Tuesday, as she warned that tariffs could hinder progress on inflation.

Both the US and China have accused each other of violating a preliminary trade deal reached between the two countries last month. As part of that pact, Washington and Beijing suspended most tariffs on each other's imports for 90 days.

President Donald Trump has also vowed to double duties on steel and aluminum imports.

"The US economy is still on a firm footing, but uncertainty has notably increased since the beginning of the year," Cook said in a speech at the Council on Foreign Relations in New York. "There is evidence that changes to trade policy are starting to affect the economy."

The Fed official said that price increases due to tariffs may impede progress on inflation that remains "somewhat" above the central bank's 2% goal. One-year inflation expectations have jumped this year, but the longer-term outlook has "moved less significantly," Cook said.

The US economy contracted at a slightly slower pace in the first quarter than initially estimated, while consumer spending growth was downgraded, according to a second estimate released by the Bureau of Economic Analysis last week.

"Looking ahead, I anticipate a slowdown in the expansion of economic activity from last year's pace," Cook said. "The ultimate level of tariffs remains unknown because policy changes are still developing. However, the effects are already noticeable."

The Fed policymaker said that while the labor market remains resilient, trade policy changes could affect hiring plans.

Trump's tariffs agenda faces uncertainty after the US Court of International Trade recently ruled that he overstepped his authority by imposing duties under the International Emergency Economic Powers Act. A federal appeals court temporarily paused that ruling.

"I see the US economy as still being in a solid position, but heightened uncertainty poses risks to both price stability and unemployment," Cook said. "The current stance of monetary policy is well positioned to respond to a range of potential developments."