Federal Reserve Chair Jerome Powell said the impact of the United States’ April tariff increases is now “clearly visible” in consumer-price data and is likely to intensify in the months ahead. Speaking at the Jackson Hole Economic Symposium on Friday, Powell cautioned that the timing and magnitude of further price pass-through remain highly uncertain. Powell described the most probable outcome as a “one-time” upward shift in the price level rather than the start of a persistent inflation spiral. He acknowledged, however, that continued tariff pass-through could foster a more durable inflation dynamic, even if that scenario is “unlikely” given cooling economic growth and emerging risks to the labor market. Preliminary estimates cited by the Fed chief show the headline Personal Consumption Expenditures price index rising 2.6% over the 12 months to July, with core PCE up 2.9%. Within core categories, goods prices climbed 1.1% after falling for much of 2024, underscoring how the 145% levy on Chinese imports is feeding into retail costs. Powell said policymakers will monitor whether these price gains materially raise the risk of an ongoing inflation problem before adjusting interest-rate strategy.