Federal Reserve Chairman Jerome Powell has warned that recent tariff increases are driving up inflation expectations, potentially leading to higher prices and job losses if the tariffs persist. This concern was highlighted in a recent survey that found respondents believe tariffs to be the main driver of inflation expectations. The impact of these tariffs is proving to be more significant than expected, with Powell emphasizing that sustained tariffs could result in both increased inflation and reduced employment. The scale, timing, and long-term inflation expectations surrounding tariffs will ultimately determine how effectively we can prevent persistent inflation.