Federal Reserve Bank of Richmond President Thomas Barkin said Thursday tariffs are very likely to push inflation up over coming months, in remarks that said central bank policy is where it needs to be to deal with what lies ahead.

Federal Reserve Chair Jerome Powell said the central bank is taking a more cautious approach to the effects of President Trump’s tariff increases than it did in 2019 because recent increases in tariff rates are much larger and because the economy is coming off a period of much higher inflation.