UBS Chief Executive Sergio Ermotti warned on Tuesday that expected tariffs from Donald Trump’s second White House administration would seep into markets and drive up inflation. Falling interest rates may stall.

“I’ve been saying for a while that inflation is more troublesome than we’ve let on,” he told CNBC’s Andrew Ross Sorkin. “The (truth of the matter) is we also need to look at tariffs How will it play out in inflation.”

“Tariffs probably won’t really help inflation come down. So I don’t think interest rates are going to come down as fast as people think,” he said.

This breaking news story is being updated.