St. Louis Fed president Alberto Musalem said Wednesday that he isn’t convinced inflation stemming from higher tariffs on imports to the U.S. would be entirely temporary and said he’s more concerned that inflation will stall above the central bank’s 2% long-term annual target.

Risks have increased that U.S. inflation will stall above the Federal Reserve's 2% target or even rise further in the near term, with rising import taxes potentially triggering more persistent price pressures,

The St. Louis Fed staff has estimated that a 10% increase in the effective U.S. tariff rate could increase the Personal Consumption Expenditures (PCE) inflation rate by as much as 1.2 percentage points.