New Delhi, July 1 -- Federal Reserve Chair Jerome Powell said he expects to see the impact of tariffs on inflation data in the coming months.

Despite this, he acknowledged the significant uncertainties surrounding the exact timings and magnitude of these effects.

"We're watching. We expect to see over the summer some higher readings," Powell said on Tuesday.

Powell was speaking at the European Central Bank's annual Forum on Central Banking in Sintra, Portugal, moderated by Bloomberg.

Still, he added, policymakers are prepared to learn the impact could be "higher or lower, or later or sooner than we expected."

The US central bank is currently wrestling with an awkward tension between its forecasts and recent data.

The Fed has put int...