Further escalation of trade tensions could raise worries about the global economic recovery, a top Federal Reserve official said Friday.
"Right now, it's very hard to say how current discussions might evolve, ... but if we saw broadening and retaliatory measures spreading, that could dent global confidence," Fed Governor Lael Brainard told CNBC's Sara Eisen on "Power Lunch." "It could disrupt global supply chains, so it's certainly a material uncertainty to the outlook."
Trade tensions between the U.S. and China have increased recently as the Trump administration takes a more protectionist stance. Earlier this month, President Donald Trump asked U.S. Trade Representative Robert Lighthizer to consider $100 billion in additional tariffs against China. Last month, the U.S. slapped tariffs on up to $60 billion in annual Chinese imports.