


WASHINGTON — 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.
On the second day of his twice-yearly testimony before the House and Senate, Powell said consumers will likely have to shoulder some of the cost of the tariffs. Most Fed officials support cutting rates this year, he added, but the central bank wants to take time to see how inflation changes in the months ahead.
“There will be some inflation from tariffs coming,” Powell said under questioning from members of the Senate Banking Committee. “Not yet, but over the course of the coming months.”
Powell noted that the duties would likely cost hundreds of billions of dollars annually, and “some of that is going to fall on the consumer.”
Some GOP senators criticized Powell for characterizing tariffs as a potential driver of inflation. Sen. Bernie Moreno, R-Ohio, echoed some of Trump’s complaints about Powell’s reluctance to cut rates and accused Powell of political bias. “You should consider whether you are looking at this through a fiscal lens or a political lens because you just don’t like tariffs,” Moreno said.
Powell didn’t respond. But he reiterated that most central bank officials do support cutting the Fed’s key rate this year. He added that it is possible that tariffs won’t increase inflation by much.
Trump has criticized Powell for not reducing borrowing costs, calling him a “numbskull” and a “fool.”