Powell tells Senate Fed will weigh tariffs as a risk while aiming to sustain jobs and bring inflation to 2%

Federal Reserve Chair Jerome H. Powell told the Senate Banking, Housing, and Urban Affairs Committee on Tuesday that the Fed remains focused on its “dual mandate goals of maximum employment and stable prices for the benefit of the American people.”

Powell said incoming economic data show the U.S. economy is ‘‘in a solid position’’ with unemployment near what the Fed considers maximum employment and inflation ‘‘running somewhat above our 2% longer run objective.’’ He told senators that private domestic demand remains solid even as measurements of gross domestic product have been complicated by recent swings in net exports.

Why it matters: Powell repeatedly framed tariffs announced this year as a source of uncertainty that could push up prices and slow activity. He said the Fed does not take a position on trade policy’s merits but must prepare for tariff effects on…