“Ultimately the cost of the tariff has to be paid, and some of it will fall on the end consumer,” Powell said. “We know that’s coming, and we just want to see a little bit of that before we make judgments prematurely.”
There’s a lot of unknowns about the outlook for the economy and interest rates, but Federal Reserve Chair Jerome Powell signalled at least one thing seems certain: Higher prices are coming.
Policymakers voted unanimously to hold interest rates steady for a fourth straight meeting Wednesday as they await clarity on whether tariffs will leave a one-time or more lasting mark on inflation. Powell said it’s still unclear how much of the bill will fall on the shoulders of consumers, but he expects to learn more about tariffs this summer.
