Once inflation began tapering toward the Fed's goal of 2%, the central bank began cutting interest rates to provide relief to borrowers. However, inflation began creeping up again toward the end of 2024,

The remarks came a day after Powell voiced alarm about Trump’s tariff policy, saying it would likely hike inflation and slow economic growth. Powell indicated that the Fed may approach interest rates with restraint as policymakers observe the economic effects of Trump's tariffs.