By Howard Schneider AMELIA ISLAND, Florida (Reuters) -Federal Reserve officials said on Tuesday that higher prices are coming on the back of rising U.S. import tariffs and counseled patience before making any interest rate decisions before it is clear whether the inflation shock will be fleeting or more persistent.

A top Federal Reserve official said the steep cost of President Trump’s major policy bill caught the bond market off-guard, leading to a spike in U.S. interest rates. In a Thursday

President Trump's tax plan has sparked concern among investors, driving Treasury bond yields to a nearly two decade high, amid growing worries over U.S. debt.

Federal Reserve Governor Christopher Waller said markets are demanding higher Treasury yields due to concerns about tax cuts widening the federal budget deficit.

There is one subject where Federal Reserve Chair Jerome Powell has been totally consistent since becoming central bank boss nearly seven years ago: The nation’s fiscal path is 'unsustainable.'

The White House’s chief economist dismissed the idea that tariff increases will have a lasting impact on US inflation, and cited the potential for interest rates to get back down to pre-Covid levels.Most Read from BloombergAmerica,

Atlanta Fed President Raphael Bostic explained it would take time for the central bank to fully understand the economic effects of the White House’s new tariff policy. Because of that prolonged process, he only saw room for one interest rate cut this year.