(Reuters) - U.S. President Donald Trump on Wednesday said the Federal Reserve would be better off cutting rates "as U.S. tariffs start to transition (ease!) their way into the economy", on the day the central bank kept rates unchanged.

The Trump administration's initial policies, including extensive import tariffs, appear to have tilted the U.S. economy towards slower growth and at least temporarily higher inflation, Federal Reserve Chair Jerome Powell said earlier.

(Reporting by Costas Pitas; Editing by Muralikumar Anantharaman)