"The level of tariff increases announced so far is significantly larger than anticipated, and the same is likely to be true of the economic effects," said U.S. Federal Reserve Chair Jerome Powell during an address to the Economic Club in Chicago on April 16.

U.S. President Donald Trump's tariffs will likely push up prices and constrain growth, and could put the Federal Reserve in the unenviable position of having to choose between tackling inflation and unemployment, says the central bank's chair.