US Federal Reserve chair Jerome Powell on Tuesday warned that Americans would likely feel the impact of tariffs on prices in the coming weeks.
“We’re watching. We expect to see over the summer some higher readings,” Powell told a panel led by the European Central Bank in Portugal, adding that high levels of uncertainty remain.
The Fed has sought to balance economic forecasting, which projects increased inflation from tariffs, and recent data, which has been more muted.
The bank is expected to make at least one interest rate cut this year, although Powell refused to confirm other governors’ hints that a cut could come this month. That could further stoke US President Donald Trump’s ire: Powell’s remarks came a day after Trump again urged him to resign.
— Paige Bruton
