Federal Reserve Chair Jay Powell expressed concern that Donald Trump’s tariffs could hinder the Fed’s ability to manage inflation while achieving maximum employment, stressing the importance of price stability for a strong labor market. He noted the tariffs’ unexpectedly large impact on inflation and economic growth, suggesting a potential tension between the Fed’s dual mandate goals. Recent surveys indicate rising expectations for price increases, prompting the Fed to adopt a cautious “wait and see” approach while maintaining the current benchmark interest rate.