Taxes on goods the U.S. imports will affect what consumers pay, but will we see one-time price hikes or a more persistent form of inflation?

What do Federal Reserve leaders think about President Trump’s tariffs and how they will affect inflation? And how will they react if he imposes stiff sanctions on other countries?

Hot inflation has raised the stakes of President Trump’s plans to escalate his use of tariffs on the country’s biggest trading partners, risking even higher consumer prices and pushing back the prospects of the Federal Reserve lowering interest rates soon.

President Donald Trump doubled down on his extraordinary push for more balanced trade, ordering on Thursday that agencies should investigate plans for new reciprocal tariffs that could boost America’s revenue — but could also ignite a global trade war and add to America’s rebounding inflation problem.

Higher inflation in the U.S. might end up forcing President Trump to limit trade tariffs, according to Michael Hartnett, chief investment strategist at BofA. Hartnett said that 3% U.S. CPI in January is a “blessing in disguise” for bonds and stocks.