$BNB "Our obligation is to … ensure that a one-time increase in the price level does not become a recurring inflation problem," said Powell during remarks made in Arlington, Virginia.

Powell's emphasis on inflation suggests that the Fed is likely to keep its benchmark interest rate unchanged at around 4.3 percent in the coming months. Meanwhile, Wall Street investors now expect five interest rate cuts this year, a figure that has increased since President Donald Trump announced the tariffs on Wednesday.