President Trump is set to announce reciprocal tariffs on what is being referred to as "Liberation Day," aiming to use tariff revenue to offset tax cuts elsewhere. Meanwhile, concerns over inflation are growing as key price gauges show a steady increase. The Federal Reserve is facing a challenging decision as it balances rising inflation with the potential need to cut rates to prevent a recession. CFOs are particularly worried about the impact of tariffs and inflation on their businesses, with many taking precautionary measures to mitigate risks. It's a time of uncertainty and strategic recalibration for finance chiefs.

Tariffs and inflation are top of mind for CFOs

Despite reassurances from Fed Chair Jerome Powell, CFOs remain wary of the effects of tariffs and inflation. A recent survey shows that finance chiefs are bracing for resurgent inflation and delayed achievement of target inflation rates. Many CFOs are already implementing strategies to manage higher costs, such as diversifying supply chains and passing along costs to customers. It's a challenging time for finance leaders who must navigate these uncertain economic conditions.

Amidst these challenges, CFOs are advised to focus on risk management, strategic adjustments, and preparedness to weather the storm. As businesses face increased uncertainty, CFOs play a crucial role in guiding their organizations through turbulent times.

Sheryl Estrada
sheryl.estrada@fortune.com