Federal Reserve Chair Jerome Powell said Wednesday that President Donald Trump's sweeping tariffs will likely push up inflation in the coming months, even as some Republican senators suggested the chair was biased against the duties.

The Trump administration's tariff plans may well just cause a one-time jump in prices, but the risk it could cause more persistent inflation is large enough for the central bank to be careful in considering further rate cuts,

Federal Reserve Chair Jerome Powell said the US central bank is still struggling to determine the impact of tariffs on consumer prices.

Federal Reserve Chair Jerome Powell was back on Capitol Hill for his second day of testimony. This time he was in front of the Senate Committee on Banking, Housing, and Urban Affairs. Powell has said recent economic data would likely have justified cutting interest rates,

U.S. Federal Reserve Chair Jerome Powell resumed two days of congressional testimony on Wednesday, appearing before the Senate Banking Committee after scrutiny before a House panel the day before that focused on the Fed's concerns that the Trump administration's tariff plans will raise inflation.

Waller highlighted that inflation has been running close to the Fed’s 2% target, and said the current rate setting (targeting 4.25%-4.5%) is 1.25 to 1.5 percentage points above neutral -- in other words,