Policymakers at the US Federal Reserve are trying to gauge the impact of the sweeping tariffs imposed by President Donald Trump. They say the outlook is unclear, but they will continue to keep a close watch on the data.



Chair Jerome Powell made the remarks at a conference in the state of Virginia. He said, "While uncertainty remains elevated, it is now becoming clear that tariff increases will be significantly larger than expected, and the same is likely to be true of the economic effects, which will include higher inflation and slower growth."



Powell added that the "economy is still in a good place," pointing to a balanced labor market and inflation just above the Fed's target of 2 percent. He said it is "too soon to say" what monetary policy the Fed might pursue.



Trump took to social media and urged Powell to cut interest rates. He said it would be the "perfect time."