Higher tariffs are pushing up prices in some categories of goods, resulting in higher overall inflation. A reasonable base case is that the effects on inflation will be relatively short-lived, a one-time shift in the price level. But it is also possible that the inflationary effects could instead be more persistent. And that is a risk to be assessed and managed. That a one-time increase in the price level does not become an ongoing inflation problem. In the near term, risks to inflation are tilted to the upside, and risks to employment to the downside. A challenging situation. There is no risk-free path for policy as we navigate this tension between our employment and inflation goals.