Powell: Maintaining tariffs at current levels may prevent the Federal Reserve from achieving its goals for at least the next year.

Federal Reserve Chairman Powell said that if Trump's tariffs ultimately remain at their current level, it could delay the Fed's achievement of its goals. "Given the scope and scale of the tariffs, we are likely to see increased risks of rising inflation and unemployment. If that's the case - if tariffs are ultimately implemented at a level we are not yet clear on - then we will not be able to make further progress in achieving our goals," he said. "We may see this process delayed." Powell specifically noted that this could delay the Fed's timeline by about a year. "In our view, we will do nothing but continue to achieve these goals. But at least for the next year, we will not be able to make progress in achieving these goals - again, emphasizing that if tariffs develop in this way," he added. "The problem is, we don't know. There is too much uncertainty about the scale, scope, timing, and duration of the tariffs."