U.S. stocks saw a selloff accelerate on slightly hotter-than-expected inflation data and ongoing tariff worries that could keep Fed rates on hold.

As Wall Street heads into a new quarter, a flurry of President Donald Trump’s tariffs are set to go into effect. That has traders on edge and has helped put US stocks on track for their worst quarter in years.

The Federal Reserve might not be able to "look through" the effect of tariffs on the inflation rate, said St. Louis Fed President Alberto Musalem on Wednesday. In a speech in Kentucky, Musalem said that there is a burst of inflation when tariffs are first implemented that could be ignored,