Federal Reserve Chair Jerome Powell expressed concern over achieving the central bank’s dual mandate as tariffs are likely to drive inflation higher while weakening economic growth. His comments added further pressure on US stock markets and the US dollar on Wednesday.

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.

Federal Reserve Chair Jerome Powell said Wednesday that President Donald Trump's quickly evolving tariff policies could put the central bank in a difficult position. "The level of the tariff increases announced so far is significantly larger than anticipated,