The economy will likely stumble as it adjusts to new trade policies announced by the Trump administration, Federal Reserve Chair Jerome Powell said Wednesday. But it’s unknown whether any inflationary effects will be long term or a one-time hit for businesses and consumers.

Federal Reserve chair Jerome Powell said on Wednesday that President Trump's tariffs would likely lead to a faster rise in prices and weigh on economic growth. Why it matters: Trump campaigned on lowering prices for inflation-weary consumers, but Powell is the latest to suggest Trump's trade war might do the opposite.