The main bank in the US did not change the money cost. They said it is harder to find jobs and prices are going up. This is a problem for the bank.

The central bank did not change the money rate. Some people thought they would make it lower. But new taxes made the money situation not clear.

Jerome Powell talked after the policy paper. He said taxes made people and companies feel bad. But they did not hurt the economy much yet. Powell said it is hard to know what to do now because things are not clear.

Prices might go up. The economy might grow slower. More people might not have jobs, Powell said. This might be for a short time or a long time.

Usually, prices go up when people buy a lot. Jobs go down when the economy is not strong.

When prices go up a lot and many people lose their jobs, it is called stagflation. This is a big problem for the country. It happened many years ago, in the 1970s.

Some people think Trump's taxes on things from other countries could make prices higher. Companies might also fire workers because things cost more.

The Fed helps prices stay good and helps people get jobs. If prices go up, the Fed makes it harder to borrow money. If people lose jobs, the Fed makes it easier to borrow money.

But Powell said the economy is good now, so the Fed will not do anything.

Many people thought the economy would get better and jobs would be good.

But on Wednesday, Powell said it would not happen.

If taxes are high, we cannot reach our goals for about a year.

Powell said the Fed will look at prices and jobs. If prices go up too much or many people lose jobs, the Fed will decide what to do.

We will wait and see what happens. Then we will make a decision.

Krishna Guha thinks the Fed will not cut interest rates now because the economy is good.

Trump put extra tax on some things from China.

The bank is careful. This might cause problems between the bank and Trump.

Someone asked if Trump's idea about lower prices changes the Fed's work. Powell said, "No, it does not change our work. We only look at the numbers, what we think will happen, and the dangers. That is all."

If the Fed makes money cheaper, loans can cost less. This helps with loans for houses, cars, and credit cards. But it might not happen.

A big question for the Fed is how import taxes will change prices.

The U.S. economy is good now. Prices are not going up fast like in 2022. People are buying things. Businesses are hiring people. Not many people are without a job.

But prices may go up more.