Federal Reserve Chair Jerome Powell restated on Wednesday during his speech before the House Financial Services Committee that the central bank is reserving its "judgment" of US President Donald Trump's tariffs until their impact becomes clearer.

"The Fed makes its decisions based on what's happening in the economy," Powell elaborated. "The central bank is reserving judgment on the likely effect of tariffs until it sees the policies." Earlier, Trump said that interest rates should be reduced to go "hand in hand" with his forthcoming tariff measures.

"We are close but not there on inflation. Today's inflation print says that as well. We want to keep policy restrictive for now," the policymaker added.