MNI BRIEF: Fed's Powell Sees Bigger Tariff Boost To Inflation

Federal Reserve Chair Jerome Powell said Wednesday he expects tariffs to boost prices more noticeably in coming months, but added monetary policy is in a good place to react to possible shifts in the economy. 

"We've had goods inflation just moving up a bit. We do expect to see more of that over the course of the summer. It takes some time for tariffs to work their way through the chain of distribution to the end consumer," Powell told reporters during his post-meeting press conference. "A good example of that would be goods being sold at retailers today may have been imported several months ago before tariffs were imposed."

He added: "That's why we think the appropriate thing to do is to hold where we are as we learn more. And we think our policy stance is in a good place where we're well-positioned to react to incoming developments." (See MNI INTERVIEW: Tariff Uncertainty To Drive Factory Outlook-ISM)