Federal Reserve Chair Jerome Powell said Friday that the size and potential economic harm of President Trump's new tariffs were far larger than anticipated, raising new challenges as the bank attempts to end its inflation fight.

In a Friday speech to a business journalism conference, Powell warned that the scope and scale of Trump's new reciprocal tariffs exceeded expectations and raised the risk of long-term inflation increases.

Powell did not mention by Trump by name and made clear his comments were simply an analysis of the challenges the Fed may face as the bank aims to bring interest rates down, not a criticism of administration policy.

"While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected. The same is likely to be true of the economic effects, which will include higher inflation and slower growth," Powell said.

"While tariffs are highly likely to generate at least a........

© The Hill