Jerome H. Powell, chair of the Federal Reserve, says the central bank’s “obligation” is to ensure that a “one-time increase in the price level does not become an ongoing inflation problem.”

President Donald Trump's harsher-than-expected global tariffs sent economists scrambling to revise their economic estimates. They project the U.S. economy faces higher inflation, slower growth, and greater recession risks.

At a conference held by the Society for Advancing Business Editing and Writing, Powell said that the economy is “still in a good place,” but Trump’s tariffs may cause more “persistent” effects, such as “elevated” rates of unemployment.