U.S. economic growth will likely slip "materially" below trend and the unemployment rate will rise over the year as firms and households adjust to prices driven higher by new import tariffs, St. Louis Fed President Alberto Musalem said.

Fed's Powell said the economy is in "good place," and officials must keep inflation controlled. His remarks suggest the possibility of fewer rate cuts

Fed officials said then that rising inflation would only be “transitory.” Notoriously, that proved to not be the case, and, by the spring of 2022, the Fed was in the throes of its most aggressive rate-hiking campaign since the 1980s. Inflation has ...

U.S. Federal Reserve policymakers were nearly unanimous at their meeting last month that the U.S. economy faced risks of simultaneously higher inflation and slower growth, with some policymakers noting that "difficult tradeoffs" could lie ahead for the central bank,

His remarks come amid growing unease in financial markets as the impact of Trump’s latest round of tariffs on key trade partners continues to unfold.

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However, the Commerce Department announced Friday that the Fed's key inflation measure expanded more than expected in February, as the growth in personal consumption expenditures put the 12-month inflation rate at 2.8%. Economists surveyed by Dow Jones had been expecting numbers closer to 0.3% for PCE and only 2.7% for the inflation rate.

The US economy could be stuck in a tug-of-war that offers no good solutions for the Fed, as low growth and rising prices result in an era of stagflation.

The Commerce Department released the February personal consumption expenditures (PCE) index, which showed that inflation remains above the Federal Reserve's 2% goal.

Federal Reserve Governor Adriana Kugler said it’s appropriate to keep interest rates unchanged until upside risks to inflation abate, pointing to government policy changes, the recent lack of progress on cooling price growth and rising inflation expectations.