Jerome Powell

if the large increases in tariffs that have been announced are sustained, they're likely to generate a rise in inflation, a slowdown in economic growth, and a rise in unemployment.

the Fed’s obligation is to keep longer-term inflation expectations anchored to make certain that a one time increase in the price level (from tariffs) does not become an ongoing inflation problem.

the Fed would assess which goal – stable prices or maximum employment – is furthest away and prioritize achieving it.

the Fed’s caution is Trump’s own tariff agenda, which is highly likely to generate at least a temporary rise in inflation.

Trump's tariffs could present a potential conflict between its mandate to keep prices stable and promote full employment.

These are very fundamental policy changes.

Tariffs could lead to inflation, economic slowdown.

The level of the tariff increases announced so far is significantly larger than anticipated.

we would consider how far the economy is from each goal

For the time being, we are well positioned to wait for greater clarity.

We understand that elevated levels of unemployment or inflation can be damaging and painful for communities, families, and businesses.

Unemployment is likely to go up as the economy slows.

The same is likely to be true of the economic effects, which will include higher inflation and slower growth.

There isn’t a modern experience of how to think about this.

Sometimes the surveys are very negative, but they keep spending.

While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent.

We face a highly uncertain outlook with elevated risks of both higher unemployment and higher inflation.

it feels like we don’t need to be in a hurry.

Our obligation is to keep longer-term inflation expectations well anchored.

At the Fed, we are squarely focused on achieving the dual-mandate goals Congress has given us of maximum employment and stable prices

significantly larger than expected

highly likely to lead to at least a temporary rise in inflation

I will say, though, it feels like we don’t need to be in a hurry.

Looking ahead, higher tariffs will be working their way through our economy and are likely to raise inflation in coming quarters.

it is also possible that the effects could be more persistent