Staff research at the bank found that the current slate of proposed tariffs could increase PCE inflation by as much as 1.2 percentage points.

Risks have increased that U.S. inflation will stall above the Federal Reserve's 2% target or even rise further in the near term, with rising import taxes potentially triggering more persistent price pressures,

St. Louis Fed president Alberto Musalem said Wednesday that he isn’t convinced inflation stemming from higher tariffs on imports to the U.S. would be entirely temporary and said he’s more concerned that inflation will stall above the central bank’s 2% long-term annual target.