"The effects on U.S. consumer prices of the increase in import tariffs this year are highly uncertain, as trade policy continues to evolve, and it is still early to assess how consumers and firms will respond," said the report, which comes ahead of next week's testimony before Congress by Fed Chair Jerome Powell.

The Federal Reserve said it is still “early” to assess the impact of President Donald Trump’s tariffs on inflation, after keeping key borrowing rates unchanged earlier this week. In its latest Monetary Policy Report,

But in the price-tracking data, the evidence is much more uneven. April’s inflation reports — measuring consumer and producer prices — showed the early imprint of tariffs. Goods most exposed to the levies, like furniture and audio equipment, became more expensive.