The close split at the U.S. Federal Reserve over whether to hedge more against inflation risks or move forward faster with rate cuts came through on Friday in the first public comments from policymakers following a decision this week to hold borrowing costs steady for now.

Tariffs will likely push inflation higher in the months ahead. Powell, speaking at a press conference following the Federal Open Market Committee’s rate decision, emphasized the high level of uncertainty facing the economy but was much more certain about this specific inflation risk.

The Federal Reserve has raised alarms about potential stagflation, a perilous mix of rising prices and slowing economic growth.