Powell said when it comes to taking the interest on reserve power away, "there's an illusion that it would save money. That is not the case."

Federal Reserve Chair Jerome Powell said Wednesday that President Donald Trump’s sweeping tariffs will likely push up inflation in the coming months, even as some Republican senators suggested the chair was biased against the duties.

Federal Reserve Chairman Jerome Powell said Wednesday that the central bank's power to pay interest on cash that banks park at the central bank is a key part of the Fed's interest rate control toolkit and would be difficult to unwind.