02:47 PM EDT, 04/04/2025 (MT Newswires) -- Fed Chairman Jerome Powell (voter) said that the impact of tariffs could be larger than expected, but it is the Fed's role to make sure that temporary inflation spikes do not translate longer term ongoing inflation.

Powell said that there is still uncertainty about how tariffs will affect the economy, though economic conditions, including the March employment report, remain solid and FOMC monetary policy remains well positioned to deal with risks to the economy. He said that it is too soon to determine what the monetary policy path will be.

Recent comments of note:

(April 3) Fed Governor Lisa Cook (voter) said that the FOMC can be patient before adjusting interest rates while remaining vigilant to any upside inflation threats from inflation or downside risks to economic growth.

(April 3) Fed Vice Chair Philip Jefferson (voter) said that the FOMC does not need to rush to make monetary policy decisions, particularly due to the current level of uncertainty in the outlook, saying the current stance is suitable to deal with any impending risks.

(April 2) Fed Governor Adriana Kugler said that tariffs could have a long-term impact on inflation rather than just a one-time effect that some are predicting, suggesting that the FOMC should keep interest rates restrictive until there is more clarity on the tariff impact.