Federal Reserve officials expect inflation to worsen in the coming months but they still foresee two interest rate cuts by the end of this year, the same as they projected in March.

Powell has made an interesting point in his Fed statement that, tariffs will ultimately be passed on to the consumer in some form, and that would mean an increase in price, and therefore higher inflation. According to Powell, tariffs are an unavoidable cost increase to businesses and consumers, in whatever form and nomenclature it is levied.