Federal Reserve Chairman Powell emphasized again that the Fed must ensure that tariffs do not trigger a more persistent rise in inflation.

Powell stated on Wednesday local time at the Economic Club of Chicago, "Our obligation is to maintain long-term inflation expectations and ensure that a one-time increase in price levels does not lead to a persistent inflation problem."

Powell said policymakers will strike a balance between the dual responsibility of promoting maximum employment and stabilizing prices, "keeping in mind that without price stability, we cannot achieve a long-term robust labor market condition that benefits all Americans."