Prices are now projected to rise faster than expected at least in part and perhaps largely due to Trump's plans to levy duties on imports from U.S. trading partners, Fed Chair Powell said.

President Trump again pressed the Federal Reserve to cut interbank lending rates as the administration’s sweeping tariffs are set to resume next month. “The Fed would be MUCH better off

It’s too early to say if “the inflationary effects will be transitory, especially given that companies and households still have fresh in their minds the recent history of high unanticipated inflation,” Mohamed El-Erian, the economist who called the Fed too cautious in handling the last inflation surge, wrote on X.

Fresh off the Federal Reserve’s new economic projections showing officials expect higher inflation and slower growth this year, Chair Jerome Powell said Wednesday it’s his “base case” that any bump in price-growth due to President Donald Trump’s tariffs policy would prove transitory.

Federal Reserve Chair Jerome Powell said that "a good part" of inflation will likely come from President Donald Trump's trade policies.