Federal Reserve Chair Jerome Powell raised concerns about President Donald Trump's significant tariffs potentially leading to increased inflation and slower economic growth. Powell emphasized that tariffs historically have negative impacts on the Fed's dual mission of maintaining low inflation and high employment levels. The Fed is closely monitoring the situation before deciding on any changes to its key interest rate, as it remains uncertain which economic threat will pose the greatest risk. Powell expressed the need for a cautious approach and emphasized the uncertainty surrounding the duration and effects of the tariffs. The Fed's main focus is on managing inflation and employment, and they are prepared to adjust interest rates accordingly if necessary. Powell highlighted the unpredictability of the situation and the importance of observing developments before taking any decisive actions.