WASHINGTON — Federal Reserve Chairman Jerome Powell says the economy is in a “good place” at the moment with low unemployment and inflation rising toward the Fed’s optimal range. But he said rising trade tensions and higher tariffs could end up being a drag on growth.

In an interview for American Public Media’s “Marketplace” radio program, Powell gave an upbeat assessment of the economy, in remarks signaling that the central bank’s current pace of gradual interest rate increases should continue. The Fed has raised rates twice this year and is projecting two more rate hikes this this year.

Powell, who was named Fed chairman by President Trump, said he is not concerned about possible political pressure trying to influence the Fed’s rate decisions.