U.S. Federal Reserve officials who've said they needed more details before estimating the economic impact of President Donald Trump's trade plans got perhaps more than they bargained for on Wednesday when he unveiled sweeping tariffs analysts say could dramatically reshuffle the country's economic outlook.

Federal Reserve Governor Lisa Cook said on Thursday that the central bank can take its time to assess a highly unsettled environment before moving interest rates again, amid risks inflation could worsen due to tariffs.

In 2021, as the US economy recovered from the pandemic, consumer prices began to creep higher. Federal Reserve officials said then that rising inflation would only be “transitory.”

The trade uncertainty fueled by recent tariffs will likely raise the risks of higher inflation and slower growth, and pose challenges for Federal Reserve policy, a senior banking official said Thursday.

Federal Reserve Chair Jerome Powell may offer clues about the central bank's approach to inflation on Friday. Powell will be in Arlington, Va., to deliver remarks at the Society for Advancing Business Editing and Writing's annual meeting.

Federal Reserve Governor Adriana Kugler said it’s appropriate to keep interest rates unchanged until upside risks to inflation abate, pointing to government policy changes, the recent lack of progress on cooling price growth and rising inflation expectations.

The Commerce Department released the February personal consumption expenditures (PCE) index, which showed that inflation remains above the Federal Reserve's 2% goal.

Federal Reserve Governor Adriana D. Kugler discusses rising inflation expectations, policy uncertainty, and tariff risks, emphasizing challenges to

However, the Commerce Department announced Friday that the Fed's key inflation measure expanded more than expected in February, as the growth in personal consumption expenditures put the 12-month inflation rate at 2.8%. Economists surveyed by Dow Jones had been expecting numbers closer to 0.3% for PCE and only 2.7% for the inflation rate.