Christopher J. Waller argued that the effect of tariffs on prices could be short-lived, but he warned about a bigger hit to growth.

Officials at the Federal Reserve said this week that the U.S. economy is in for higher inflation and slower growth as President Donald Trump's trade war heats up. Several Fed officials indicated that inflation is their biggest concern.

Fed's Powell said the economy is in "good place," and officials must keep inflation controlled. His remarks suggest the possibility of fewer rate cuts