Fed Chair Jerome Powell warned on Friday that President Donald Trump's higher tariffs are "likely to raise inflation in coming quarters."
On Wednesday, President Trump announced that 10% baseline tariffs will go into effect on April 5, while the higher reciprocal rates will take effect on April 9.
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Noting that the higher tariffs will be working their way through the U.S., Powell warned they could cause slower growth.
"While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent," he said at the Society for Advancing Business Editing and Writing Annual Conference in Arlington, Virginia.
President Trump’s trade policy has sought to address what his administration views as unfair trade with other nations, boost manufacturing, raise revenue, and pay down the national debt.
However, many economists have warned that the tariffs could worsen inflation and hurt consumers.
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In a public message directed at Powell on Friday, President Trump called for the Fed chair to cut interest rates.
"He is always "late," but he could now change his image, and quickly," Trump posted on Truth Social.
While Powell did not directly address Trump's post, he noted that the economy is "still in a good place," adding that the labor market is in balance and inflation is still "running much closer to, but still above, our 2% objective."
