The Federal Reserve has revised its economic outlook, citing rising tariffs and their impact on inflation. In 2021, Fed Chair Jerome Powell described the surge in prices as “transitory,” but now acknowledges it may be more persistent. As costs continue to accelerate, Powell’s predecessor is revising his forecast, warning that inflation could persist over the long term.
Source: https://www.bloomberg.com/news/newsletters/2025-03-20/federal-reserves-interest-rates-transitory-returns-as-tariffs-set-to-bite