Federal Reserve Chair Jerome Powell made clear the US central bank won’t rush to react to sweeping Trump administration tariffs, or to the financial market turmoil that has ensued amid fears of a global economic downturn.

Tariffs are likely to have a significant effect on the US economy, including slower growth and higher inflation, Powell said Friday at a conference in Virginia. But, he added, Fed officials will wait to gain more clarity on those policies before lowering interest rates.