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.

St. Louis Fed president Alberto Musalem said President Trump's new tariffs could have a more persistent impact on inflation, a departure from Fed Chair Jerome Powell's 'base case' that any price increases could prove to be 'transitory.

Risks have increased that U.S. inflation will stall above the Federal Reserve's 2% target or even rise further in the near term, with rising import taxes potentially triggering more persistent price pressures,