Federal Reserve Chairman Jerome Powell found himself in the hot seat during his second day of testimony before the Senate Banking Committee on June 25th. Republican senators grilled him on the Fed’s perceived inaction regarding interest rate cuts.

Echoing his statements from the previous day’s House Financial Services Committee hearing, Powell maintained that President Trump’s expansive global tariffs are poised to fuel inflation in the near future. The central point of contention revolved around the long-term implications of these tariffs.

Powell clarified the debate, stating that the key question is whether these tariff-induced price increases will be temporary adjustments or lead to sustained, long-term inflationary pressures. His assessment? “There will be some inflation from tariffs coming,” Powell stated, adding, “Not yet, but over the course of the coming months.”