Jerome H. Powell, chair of the Federal Reserve, says the central bank’s “obligation” is to ensure that a “one-time increase in the price level does not become an ongoing inflation problem.”

Federal Reserve Chair Jerome H. Powell said April 4 that President Donald Trump’s sweeping tariffs could raise inflation and slow growth; however, it’s “too soon to say” how the Fed will adjust monetary policy as a result.

Alongside inflation concerns, Powell highlighted the likelihood of slower economic growth as a consequence of increased tariffs. Such an environment can hinder job creation and potentially lead to higher unemployment rates.