Powell holds ground despite criticism

WASHINGTON — Federal Reserve Chair Jerome Powell on Tuesday stuck to his position that the central bank will keep its key rate on hold while it waits to see how President Donald Trump's tariffs affect the economy, despite the steady stream of criticism from the White House, which wants lower borrowing costs.

Powell also said that U.S. inflation is likely to pick up later this summer, though he acknowledged that the timing and magnitude of any price increase from the duties is uncertain. But he said the Fed will keep rates on hold while it evaluates the impact of tariffs on the U.S. economy.

"As long as the economy is in solid shape, we think the prudent thing to do is to wait and see what those effects might be," Powell said, referring to the sweeping duties Trump imposed this year.