Fed Chair Powell says the cost of being cautious on rates is low

March 7 (Reuters) - Federal Reserve Chair Jerome Powell on Friday said the cost of being cautious on monetary policy is "very very low" right now, but also said that if inflation expectations came under pressure speed those costs could rise, and while the standard monetary policy response to the one-time price increases expected from tariffs would be to ignore it, this time could be different.

"If it turns into a series of things and... if the increases are larger, that would matter, and what really would matter is what's happening with longer term inflation expectations," Powell said at a research conference in New York City.

He also noted that in 2019, the Fed actually cut rates three time in response to the first Trump administration's tariffs and the slowdown they triggered. "It's what's happening with growth and, and all the other things as a result of these broad changes in economic policy, not just tariffs."