Federal Reserve Chair Jerome Powell said Trump tariffs are likely to raise inflation and slow economic growth.

In the last few years, consumers have enjoyed record-high annual percentage yields (APYs) on their savings accounts, thanks primarily to the Federal Reserve raising its federal funds rate in an effort to curb inflation.

Key Takeaways Economists say President Donald Trump's Wednesday announcement of broad-based tariffs on trading partners worldwide will likely push up inflation and increase the chances of a recession.

Powell said the tariffs and their impacts on the economy and inflation, are “significantly larger than expected.”

Federal Reserve Governor Lisa Cook said on Thursday that the central bank can take its time to assess a highly unsettled environment before moving interest rates again, amid risks inflation could worsen due to tariffs.

U.S. Federal Reserve officials who've said they needed more details before estimating the economic impact of President Donald Trump's trade plans got perhaps more than they bargained for on Wednesday when he unveiled sweeping tariffs analysts say could dramatically reshuffle the country's economic outlook.

President Trump is pushing an aggressive policy against America's main trading partners that economists broadly agree will drive up inflation.

President Donald Trump’s tariff increases will be significantly larger than expected, likely increasing the risk of higher inflation and slower economic growth, Federal Reserve Chairman Jerome Powell said Friday.

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.”