02:59 PM EDT, 05/07/2025 (MT Newswires) -- Given the uncertainty in the outlook for the US economy and the possibility of a conflict in the Federal Open Market Committee's goals due to the Trump Administration's tariffs, the Committee can be patient before acting, Federal Reserve Chairman Jerome Powell said Wednesday in a press conference after the FOMC meeting.

"We will know more with each week and month that goes by, about where tariffs are going to land," Powell said. "And we will know what the effects will be when we start to see those things. So, we think we will be learning. I can't tell you how long it will take, but for now, it does seem like it's a fairly clear decision for us to wait and see and watch."

Powell repeated that the FOMC has an obligation to prevent a one-time increase in tariff-related prices from lifting long-term inflation expectations.

"As we act to meet that obligation we will balance our maximum employment and price stability mandates keeping that in mind without price stability we could not achieve the long periods of stronger labor market conditions that benefit all Americans," Powell said.

"Uncertainty about the economic outlook has increased further, the FOMC's post-meeting statement said. "The Committee is attentive to the risks to both sides of its dual mandate and judges that the risks of higher unemployment and higher inflation have risen."

Powell acknowledged that the FOMC may face those competing goals, repeating that the Committee would "consider how far the economy is from each goal and the potentially different time horizons over which those respective gaps would be anticipated to close. For the time being, we are well positioned to wait for greater clarity before considering any adjustments to our policy stance."

Asked if the FOMC could consider cutting interest rates preemptively to head off a possible recession, as it has in past moments of crisis, Powell again urged caution.

"It's not a situation where we can be preemptive because we actually don't know what the right response to the data will be until we see more data," he said.