Federal Reserve Chairman Jerome Powell said Wednesday he won’t reduce interest rates largely due to President Donald Trump’s trade war.

“Higher tariffs have begun to show through more clearly to prices of some goods, but their overall effects on economic activity and inflation remain to be seen,” Powell said.

He noted that a “reasonable case” could be made that Trump’s trade war may have a “short-lived” impact on inflation, but as it stands now, there is an overall concern about the slight increase in inflation last month.

“Our obligation is to keep longer-term… inflation expectations well anchored and to prevent a one-time increase in the price level from becoming an ongoing inflation problem,” Powell said.

“For the time being, we’re well-positioned to learn more about the likely course of the economy and the evolving balance of risks before adjusting our policy stance,” he continued. “We see our current policy stance as appropriate to guard against inflation risks.”

Economists across the political spectrum opposed Trump’s taxes on foreign products. A July report that showed a slight uptick in inflation prompted economists to fear it was tariff-driven.

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